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Key employment statistics National Minimum Wage As from 1st October 2008 the rates are:
Statutory Sick Pay (SSP) Statutory Sick Pay is payable for up to 28 weeks. The employee must earn a minimum of the Lower Earnings Limit. The rate of SSP as from 6 April 2008 is £75.40 (previously £72.55). The daily rate of SSP is calculated by dividing the weekly amount by the number of qualifying days in the week. To calculate the rate for a number of days, the unrounded rate is multiplied by the number of days and rounded up to a whole penny. Statutory Maternity Pay (SMP) For employees who earn more than the Lower Earnings Limit:
Statutory Paternity Pay (SPP)
Statutory Adoption Pay (SAP)
Employer supported childcare Employers can contribute up to £55 per week (£243 per month) towards childcare costs, free of tax and National Insurance contributions, provided this benefit is offered to all employees. The payment may be made by voucher or otherwise, and the care must be provided by an approved childcarer, whether registered childcare or approved home-childcare. Week's pay The maximum weekly wage used for calculating statutory redundancy payments, basic awards, and other statutory compensation is £330 as from 1st February 2008. Statutory Redundancy Pay (SRP)
Unfair dismissal
Guarantee payments ("lay-off pay")
Income tax 2008-9 tax year - as published in the budget (later revised - see below)
2008-9 tax year - revised rates:
Employees National Insurance Contributions (NICs) Tax year 2008-9:
Taxation of company cars The benefit charge for a company car is calculated initially as a percentage of the car's list price. The percentage charge depends on the car's rated CO2 emisson level, ranging from 15% for the most efficient vehicles to a maximum of 35% for heavy polluters. The CO2 emissions qualifying for the minimum petrol percentage (15%) charge are 140 grams per kilometre of CO2. For details of individual cars, click here. Car fuel benefit Fuel benefit charge is linked directly to carbon dioxide emissions. The charge applies where an employee who has a company car is provided with free fuel for private use. The same percentage figures are used as for the company car benefit charge. Like car benefit, the fuel benefit charge is based on the level of CO2 emissions of the car, with the same 3 per cent supplement for diesels which do not meet Euro IV standards and reductions for alternatively fuelled cars. Also like car benefit, the percentages for petrol and diesel range from a minimum of 15 to a maximum of 35 per cent and the percentage for alternative fuels and hybrid cars can be below 15 per cent with reductions. To calculate the benefit charge on free fuel the percentage figure will be multiplied against a set figure of £16,900 (from 6.4.08, previously £14,400). Employer provided vans Employees who are obliged to take their vans home, but are prevented from making any other private use of the vehicle, are exempted from any tax charge. From April 2007, the scale charge for unrestricted private use is £3,000, whatever the age of the van. An additional fuel scale charge of £500 will apply where fuel is provided for private mileage. Authorised mileage rates - own vehicle For employees who use their own vehicles for business travel (irrespective of engine size). These payments are free from tax and NICs. Motorcars and vans:
Motorcycles:
Bicycles:
Authorised mileage rates - company-provided vehicles The HMRC advisory rates used to negotiate dispensations for mileage payments for business travel in company cars are below. These were increased with effect from 1 July 2008; however, because of the recent (and numerous) increases in fuel prices, HMRC will permit those employers who choose to do so, to pay them from 1 June. They only apply where employers reimburse employees for business travel in their company cars, or require employees to repay the cost of fuel used for private travel. Engine size:
Future changes will be scheduled to take effect twice a year - on 1 January and 1 July. Termination payments The following termination payments are tax-free:
Relocation An employer may provide up to £8,000 tax free to an employee to help him/her to relocate (any additional sums are taxable). State retirement pension The full basic state retirement pension for a single person for the 2008-9 tax year is £90.70; for a married couple it is £145.05. Occupational pension schemes There are two limits on an individual's tax-relieved pensions savings, in the form of an Annual and Lifetime allowance. For 2008/9 the allowances are:
Stakeholder pensions All employers (other than those who are exempt) are required to consult with their employees and choose, and put into place, a stakeholder scheme. Exempt employers include: those who have less than five employees; those who have an Occupational Pension scheme already in place which all employees can join within a year of starting employment; and those who offer a group personal pension to all staff, contribute at least 3% of basic salary, offer payroll deductions if asked and have no exit/transfer charges. Employee Share Schemes The following schemes are approved by the HMRC and offer tax advantages:
Criminal Records Disclosures The initial cost to an organisation registering with the CRB is currently £300 and each additional countersignatory costs £5.00. A standard disclosure costs £31, an enhanced check £36 and a POVA/first check £6. Checks are free for volunteers. These rates were reviewed but not increased in 2008. Under the Safeguarding of Vulnerable Groups Act 2006, individuals wishing to work with vulnerable groups will need to be registered with the ISA scheme and there will be a charge for this of £64 (volunteer workers will not be charged). The fee will consist of two components: an ISA registration fee of £28 and a CRB enhanced disclosure, currently £36. Registration is portable so those transferring from one employer to another will not be required to re-register. Employers will not be charged for checking individuals' registration. Visas and work permits From 1 April 2007 an application for a work permit costs £190, and the fees for visas are as follows:
Full details are on the BIA website. When the new point-based system comes in, new charges will apply. Employers will have to be licensed to sponsor applicants for work permits. The cost of registration is likely to be £1,000 for most sponsors (£300 for a small sponsor), and each skilled worker certificate of sponsorship will cost £170. Juror's financial loss allowances Employees on jury service are allowed to claim the following allowances from the courts (the following rates apply as from 2.7.08):
Magistrate's allowances The allowances for magistrates (reviewed with effect from May 2008) are as follows:
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