Peter Arrowsmith, FCA

NATIONAL INSURANCE CONSULTANCY

Specialist technical support and other services for professionals

News from 2012

March (21st) BUDGET 2012 (1) The Government announced some details of tax rates and allowances for 2013/14. To keep the 40% starting point in line with NIC the Upper Earnings Limit (and the upper profits limit for Class 4) will decrease to £41,450 (approx £797 per week, down from £817).
(2) Certain car security enhancements will no longer be treated as an accessory and that this change will be backdated to 6 April 2011.
(3) The car fuel benefit charge for 2012/13 will be calculated on a multiplier of £20,200. Van benefit and van fuel benefit rates will not change. The car fuel benefit multiplier will increase again for 2013/14 by 2 percentage points more than the annual rate of inflation as at September 2012. The van fuel benefit charge for 2013/14 will increase by inflation. Some announcements for cars have also been made for the subsequent three years.

(20th) The Social Security (Contributions) (Re-rating) Consequential Amendment Regulations 2012 (SI 2012/867) increase the share fishermen’s rate to £3.30 from 6 April 2012.

(15th) The previously announced removal of lecturers, teachers and instructors from the 1978 Categorisation of Earners Regulations is achieved by the Social Security (Categorisation of Earners) (Amendment) Regulations 2012 (SI 2012/816) with effect from 6 April 2012.

(15th) The Social Security (Contributions) (Limits and Thresholds) (Amendment) Regulations 2012 (SI 2012/804) and the Social Security (Contributions) (Re-rating) Order 2012 (SI 2012/807) amend with effect from 6 April 2012 various rates and limits – see http://www.niconsultancy.co.uk/rate12-13.htm. Away from rates and limits, the Social Security (Contributions) (Amendment No. 2) Regulations 2012 (SI 2012/817) make various amendments consequential upon the removal of COMPS contracted-out rebates from close of business on 5 April 2012, abolish three reliefs on the recommendation of the OTS and amend and extend the exceptions from earnings for HM Forces’ allowances and council tax payments (all with effect from 6 April 2012).

January (5th) HM Revenue and Customs has issued FAQs regarding NIC aspects of the disguised remuneration regime. They are at http://www.hmrc.gov.uk/employers/nic-faqs.pdf

Office 4, Knights Farm

Newton Road

Rushden

Northamptonshire

NN10 0SX

Phone/Fax: 01933 411941

E-mail: mail@niconsultancy.co.uk

Member of the Institute of Chartered Accountants in England and Wales

Updated 21/3/2012