From 6 April 2009, changes have been made
to how employers will have to record
National Insurance Contributions (NICs)
due to changes to the State Second
Pension. Employers will have to record
NICs in the following four earnings bands,
with the introduction of the Upper Accrual
Point:
- earnings up to and including the
Lower Earnings Level (LEL), where
earnings are equal to or exceed the LEL
- earnings above the LEL up to and
including the Earnings Threshold (ET)
- earnings above the ET up to and
including the Upper Accrual Point (UAP)
- earnings above the UAP up to and
including the Upper Earnings Limit (UEL).
HMRC’s P11 Calculator on their CD-ROM has
been updated to include all four earnings
bands shown above.
It may be worth checking that, if you
use payroll software, your provider has
made these NICs changes available as part
of the annual upgrade.
HMRC’s paper form P11 Deductions
Working Sheets have been updated. The
2009/10 version can be obtained from the
Employer Orderline. Old stocks of P11
sheets should be destroyed. Further help
on completing the 2009/10 P11 can be found
in the Employer Helpbook E11 Starting the
Tax Year.
Internet link:
HMRC employer bulletin |
