Cutting red tape

PAYE and NI

PAYE and NI rates thresholds will increase from April 2013 as follows:

The standard personal allowance (amount of tax-free income) for April 2013/14 will be £9,440 which allows an individual to earn £181.54 per week (about £787 per month) tax free. This represents an increase of nearly 16.5% from tax year 2012/13.

From April 2013 the class 1 primary NI earnings threshold for employees will be £149 per week (£7755 per year). Employers will pay class 1 NI on wages of £148 or more per week (£7700 per year).

Full details of Income Tax and National Insurance rates and allowances from April 2013 are available on the HMRC website.

These PAYE and NI increases come at just the right time for millions of Britain’s workers. They will mean from April 2013 a majority of people in work will take home significantly more of their earnings before tax is applied.

In addition to increased in PAYE and NI allowances there is widespread discussion regarding increases in the National Minimum wage at the end of 2013.

Derby City Council has taken this one step further and has committed to paying what is described as the living wage. In their case over 1000 people from 2014 will have their wages increased from the national minimum wage to at least £7.45 per hour which is considered the living wage for outside London. Inside London the minimum living wage is considered to be £8.55 per hour.

For more information on PAYE and NI, as a candidate working for City Centre recruitment, on how this will benefit you please talk to your consultant.

For more information on PAYE and NI, as a client working with City Centre, please contact Dan Shrimpton for a more detailed overview.

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City Centre

Dan Shrimpton - Managing Director City Centre Recruitment

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