6 December 2006
The Pre-Budget Report & Nanny Employment
The Chancellor delivered the pre-budget report on December 6 and the following, which will come into effect at the beginning of the new tax year in April, should interest all nanny employers:
- The personal tax free allowance for employees under the age of 65 has been increased from £5035 to £5225 per annum. This means that the first £5225 earned during the 2007/2008 tax year is tax-free
- The National Insurance threshold has been increased from £97 to £100 per week, which means that NICs are only payable on salaries above this amount
- The income tax threshold has been increased from £97 to £100 per week, this means that tax only has to be paid on earnings above this amount
- As of April 2006 the Lower earnings Level (LEL) has been increased from £84 to £87per week. This is the amount that any UK employee has to earn in order to qualify for statutory benefits
- Statutory Sick Pay has been increased from £70.05 to £72.55 gross per week
- The lower rate Statutory Maternity Pay has been increased from £108.85 to £112.75. This figure also applies for Statutory Paternity Pay and Statutory Adoption Pay
Please note that Nannytax will not receive the software for next tax year until the beginning of April 2007. We will therefore not be able to give figures until that time.