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Key employment statistics Quick links to the content of this page:
National Minimum Wage As from 1 October 2011 the rates are as follows:
Please note:
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 2011 is £81.60 (£85.85 per week after 6 April 2012). 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. Back to topStatutory Maternity Pay (SMP) For employees who earn more than the Lower Earnings Limit:
Statutory Maternity Pay is reimbursed to the employer. The rate depends on how much the employer has paid in National Insurance Contributions in the previous tax year:
Statutory Paternity Pay (SPP) Subject to meeting the eligibility criteria, working fathers have the right to two
weeks' paid paternity leave Statutory Paternity Pay is reimbursed to the employer. The rate depends on how much the employer has paid in National Insurance Contributions in the previous tax year:
Statutory Adoption Pay (SAP) Subject to meeting the eligibility criteria, one of the adoptive parents may take paid adoption leave, for the same period as maternity leave, when a child is first placed with a family. Payment for adoption leave is at the same rate as lower rate SMP, ie £128.73 from 3 April 2011 (£135.45 after 9 April 2012) or 90% of earnings (whichever is less). Back to topEmployer-supported childcare Employers can contribute up to £55 per week (£243 per month) towards childcare costs, free of National Insurance contributions and subject to tax relief (see below), 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. Note however that for those who join a scheme on or after 6 April 2011, the tax relief is restricted to the standard income tax rate of 20%. The exempt amount is therefore as follows:
Note that the restriction on tax relief only applies to those who join a scheme after 6 April 2011. Employees who joined the scheme before 6 April 2011, who remain in their current employment and during that period there has not been a continuous period of 52 weeks throughout which vouchers and/or childcare were not being provided for the employee under the scheme, will continue to get tax relief as currently. For more guidance on assessing the 'employment income amount' and operating the scheme, see the HMRC guidance. Back to topGuarantee payments ("lay-off pay") The guaranteed daily rate for employees who are laid off work under the Employment Rights Act 1996 is £22.20 (from 1 February 2011). This will increase to £23.50 from 1 February 2012. Employees are entitled to guarantee payments for up to five workless days in any three month period. Where the normal working week is less than five days, the number of days' entitlement to guarantee pay is reduced accordingly. Back to topWeek's pay The maximum weekly wage used for calculating statutory redundancy payments, basic awards, and other statutory compensation is £400 for all dismissals taking effect on or after 1 February 2011. This will increase to £430 for dismissals occurring on or after 1 February 2012. Back to topStatutory Redundancy Pay (SRP) The amount of Statutory Redundancy Pay is the 'number of weeks' multiplied by the lower of either the actual average weekly wage or a maximum weekly wage of £400 (as from 1 February 2011). This will increase to £430 for dismissals occurring on or after 1 February 2012. The 'number of weeks' relates to the employee's age and completed years of
continuous service as at the date the notice period would expire. See our
Redundancy Pay ready reckoner Tribunal awards Unfair dismissal: compensation for unfair dismissal is made up of a basic award which is similar to a redundancy payment (therefore a maximum basic payment of £12,000 as from 1 February 2011 - £12,900 for dismissals occurring on or after 1 February 2012) and a compensatory award. The maximum compensatory award a tribunal can award to an employee who brings a successful unfair dismissal claim is £68,400. This will increase to £72,300 for dismissals occurring on or after 1 February 2012. The total potential liability for a normal unfair dismissal claim is £80,400 (£85,200 for dismissals occurring on or after 1 February 2012). Note also the following:
There is no limit on the amount of compensation for cases of whistleblowing,
certain health or safety matters, or discrimination due to a
protected characteristic
Breach of contract claims: the maximum award a tribunal can make is £25,000. In addition, the tribunal may award the following:
Interest is incurred if the awards are not paid within 42 days (or within 14 days in discrimination cases). Tax and NI are not normally deducted if the payment is made to an ex-employee, unless over £30K or reinstatement has been ordered. Back to topIncome tax 2011-12 tax year
2012-13 tax year (announced but unconfirmed)
National Insurance Contributions (NICs) Tax year 2011-12:
The threshold for employers' secondary National Insurance Contributions will be £136 per week. Contributions will be 13.8% of all earnings above this figure. Tax year 2012-13: (announced but unconfirmed)
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 130 grams per kilometre of CO2 for the tax year 2010/2011; and 125g for 2011/12. For details of individual cars, click here. Changes from 2011-12: The car benefit rules have been simplified for 2011-12 onwards. From 6 April 2011:
For 2012/13, the range will widen to between 11% and 35% for emission ratings of 100 to 220 g/km, with a fixed 10% for emission ratings below 100g/km. A further increase will apply to 2013/14 to between 11% and 35% for emission ratings between 95 and 215g/km, with the 10% rate applying to ratings below 95g/km. The objective is to encourage businesses to use ultra-low carbon cars. There are no changes to the 0% charge for zero emission cars and the 5% charge for low emission cars with emission ratings up to 75g/km. For further details, see: The Car Fuel Benefit Order 2011. Back to top 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 15 - 35% and the percentage for alternative fuels and hybrid cars can be below 15% with reductions. To calculate the benefit charge on free fuel the percentage figure will be multiplied against a set figure of £18,800 from April 2011 (previously £18,000 ). Back to topEmployer 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. The scale charge for unrestricted private use is £3,000, whatever the age of the van. An additional fuel scale charge of £550 (from April 2010) applies where fuel is provided for private mileage. These are unaltered for the 2011/12 tax year. Back to topAuthorised 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 adjusted with effect from 1 December 2011. 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 (petrol or LPG):
Note: petrol hybrid cars are treated as petrol for this purpose. Engine size (diesel):
The rates are now to be reviewed four times a year, with any changes taking effect at the beginning of each calendar quarter (on 1 March, 1 June, 1 September and 1 December). Further details are available on the HMRC website. Back to topHospitality to employees Employers are allowed to provide hospitality tax-free to employees (eg summer events, Christmas party) up to a total maximum of £150 per employee per year, provided that this is available to all employees. This limit applies to everything - hire of facilities, food, drink, entertainment, incidental costs, transport, overnight accommodation and VAT. Back to topTermination payments The following termination payments are tax-free, up to a total maximum of £30,000:
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). Back to topState pension The full basic state pension for a single person for the 2011-12 tax year is £102.15 for a single person and £163.35 for a married couple. Back to topOccupational pension schemes There are two limits on an individual's tax-relieved pensions savings, in the form of an annual and lifetime allowance. The amount on which tax relief on pension savings is granted fell from £255,000 a year to £50,000 from April 2011. The lifetime limit for tax-free pension saving will fall from April 2012, from £1.8 million to £1.5 million. However there are exemptions for those taking a deferred or ill-health retirement, and the option of carrying over unused allowances within a three-year period. Back to topStakeholder 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. Back to topEmployee 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 Criminal Records Bureau (CRB) is currently £300 and each additional countersignatory costs £5.00 The costs of disclosures are as follows:
Juror's financial loss allowances Employees in England and Wales who undertake jury service are allowed to claim the following allowances from the courts (the following rates apply as from 1.6.10 and will not increase for 2011/12):
Employees in Northern Ireland who undertake jury service may claim the same rates as apply in England and Wales (see above) for the first 10 days and days 11-200, but the enhanced rates that apply in England and Wales for day 201 onwards do not apply in Northern Ireland. As from 1 January 2011, slightly different rates apply to jurors in Scotland who are able to claim the financial loss allowances, whether or not they actually serve on a jury, in respect of loss of earnings or social security welfare benefits, and also any additional expense (up to a limit) incurred in employing a childminder, other child carer, or carer for a dependent adult which was necessary in order to attend the jury service. The timescales are also now different, as follows:
Magistrate's allowances The allowances for magistrates (reviewed with effect from 1 May 2009) are as follows:
Data protection As from 1 October 2009, the fees payable by data controllers to register or renew with the Information Commissioner to process personal data are as follows:
The maximum amount that an individual can be required to pay to view his/her personal data is £10.00. Back to top |
