For employers who employ employees under the age of 21 no Employers National Insurance will be payable up to the Upper Earnings Limit of £815 per week. Employers National Insurance becomes payable on earnings above £815 per week.
From April 2015 married couples and civil partners will be able to transfer part of their personal allowance to their spouse or civil partner, the transfer allowance is £1,060 for 2015/16 (being 10% of the personal allowance). The option will be available to couples where neither pays taxes at the higher or additional rate. The claim will be made online and couples will be entitled to the full benefits in their first year of marriage.
The first six weeks of SAP will now be payable at 90% of an employee’s weekly average earnings. The next 33 weeks are payable at the new rate of £139.58 a week (currently £138.18 a week). If an employee’s average weekly earnings are lower than the statutory amount they will receive the lower amount for 39 weeks.
The annual personal allowance increases from £10,000 to £10,600. This gives a monthly tax free amount of £883.33.
The tax bands for 2015/16 are as follows
Basic rate 0 – £31,785 20%
Higher rate £31,786 to £150,000 40%
more than £150,000 45%
The employee’s rate of National Insurance remains unchanged at 12%. The weekly NI free amount for employees increases from £153 to £155.
Earnings over the upper earnings limit of £42,385 remains at 2%.
Employers National Insurance remains unchanged at 13.8%. The weekly NI free amount for employers increases from £153 to £156.