Chancellor of the Exchequer George Osborne in his Autumn Statement last December and the Budget Statement this March continues with his practice of announcing changes to taxation for future tax years. CGI has again produced its popular Pay Facts card that puts together the salient points for the 2014/15 tax year.
Some of the payroll related information for the 2014/15 tax year is provided below with additional information available for download.
- Income tax rates
- Pension Schemes
- Car fuel benefit
- Company vans
- Loans
- Childcare
- Statutory Payments
- SSP recovery
- Employment allowance
- Single tier state pension
- Freedom and choice in pension schemes
Income tax rates
| Income tax rates | 2013/14 | 2014/15 | |
| Rate | Taxable income bands | ||
| Basic rate | 20% | £ 0 – 32,010 | £ 0 – 31,865 |
| Higher rate | 40% | £ 32,011 – 150,000 | £ 31,866 – 150,000 |
| Additional rate | 45% | over £ 150,000 | over £ 150,000 |
| Income tax reliefs | 2013/14 | 2014/15 |
| Single Person's Allowance | ||
| Persons born after 5 April 1948 | £ 9,440 | £ 10,000 |
| Persons born 6 April 1938 to 5 April 1948 | £ 10,500 | £ 10,500 |
| Persons born before 6 April 1938 | £ 10,660 | £ 10,660 |
| Income Limit for Personal Allowances | £ 100,000 | £ 100,000 |
| allowance reduced by 50% of excess | ||
| Married Couple's Allowance | ||
| Minimum | £ 3,040 | £ 3,140 |
| Maximum | £ 7,915 | £ 8,165 |
| Tax rate for relief | 10% | 10% |
| Income Limit | ||
| for Allowances (born before 6 April 1948) | £ 26,100 | £ 27,000 |
| allowance reduced by 50% of excess but not below level of main personal allowances unless income is above £100,000 | ||
| Blind Person's | £ 2,160 | £ 2,230 |
Pension Schemes
| Pension schemes | 2013/14 | 2014/15 |
| Lifetime allowance | £ 1,500,000 | £ 1,250,000 |
| Annual allowance | £ 50,000 | £ 40,000 |
Car fuel benefit
The company car fuel benefit charge multiplier rises from £ 21,100 in 2013/14 to £ 21,700 in 2014/15.
Company vans
The van benefit charge is now index-linked and rises from £ 3,000 in 2013/14 to £ 3,090 in 2014/15.
The van fuel benefit charge is already index-linked and rises from £564in 2013/14 to £581 in 2014/15
Loans
The 2013/14 limit of £ 5,000 on cheap or interest free loans increases to £ 10,000 from 6 April 2014.
No charge to tax arises where the total of all loans outstanding does not exceed the limit at any time in the tax year.
Childcare
A new tax-free childcare scheme will be introduced from the autumn of 2015 and over time, replace the existing system of employer supported childcare. The government will support working families with 20% of their childcare costs up to £ 2,000 per child per year. In addition, the government will increase childcare support within Universal Credit.
Statutory Payments
| Statutory Payments | ||
| Weekly values | 2013/14 | 2014/15 |
| Earnings threshold | £ 109.00 | £ 111.00 |
| Statutory sick pay | ||
| Standard rate | £ 86.70 | £ 87.55 |
| The 2014/15 rate of SSP is payable from 6 April 2014 | ||
| Statutory maternity pay | ||
| Standard rate | £ 136.78 | £ 138.18 |
| Higher rate | 90% of average weekly earnings | 90% of average weekly earnings |
| Standard rate is limited to 90% of average weekly earnings | ||
| Statutory adoption pay | ||
| Ordinary statutory paternity pay | ||
| Additional statutory paternity pay | ||
| Standard rate | £ 136.78 | £ 138.18 |
| Standard rate is limited to 90% of average weekly earnings | ||
| The 2014/15 rates of SMP, SAP, OSPP and ASPP are payable from the first full statutory payment week starting on or after Sunday 6 April 2014. | ||
SSP recovery
The Percentage Threshold Scheme for the recovery of statutory sick pay (in excess of a percentage of NIC’s liability) is abolished from 6 April 2014 and a new Health and Work Service introduced in late 2014. The service will provide both an advisory service and an assessment service for those in danger of long-term sickness absence. A targeted tax relief on amounts up to a cap of £ 500 paid by employers on health-related interventions recommended by the service (or their own occupational health service) will not be treated as a taxable benefit in kind.
Employment allowance
From April 2014, businesses, community sports clubs and charities will be entitled to an employment allowance of up to £ 2,000 per year. The employment allowance can be used to reduce the employer’s (also called secondary) national insurance contributions by up to £ 2,000.
Single tier state pension
The proposal to introduce a single tier, state retirement pension will be brought forward to 2016/17.
Contracting out of National insurance contributions will cease at that time.
Freedom and choice in pension schemes
The government proposes that from April 2015 people will be able to access their defined contribution pension savings as they wish during retirement, subject to their marginal rate of income tax. The 25% tax free lump sum will continue to be available.
