News
New Income Tax Year 6 April 2012
05 - 04 - 2012
Tax and benefit changes for the new income tax year come into effect from 6 April 2012
Several tax and benefit changes announced in the Budget and over the last 18 months take effect this month.
Already a client of Foremans LLP? You'll receive our Advice Note on tax changes that may affect your business.
Looking for a more general overview? The main changes are summarised below:
Income Tax Personal Allowance
On 6 April the personal allowance rises by £630 to £8,105 for under-65s.
The upper threshold of the basic rate falls by £630 to £34,370.
If you are aged between 65 and 74, the personal allowance rises from £9,940 to £10,500. If you are 75 or over it rises from £10,090 to £10,660. This extra amount will be gradually withdrawn from those with a taxable income between £24,000 and £29,000.
There is a gradual withdrawal of the personal allowance for everyone with income over £100,000, regardless of age.
National Insurance
The weekly earnings limit (primary threshold) for employees National Insurance Contributions (NICs) at 12% increases from £139 to £146.
The lower earnings limit for primary Class 1 NICs increases from £102 to £107.
The secondary threshold rises from £136 to £144.
Statutory Pay
Statutory Pay
The standard rate of statutory maternity, paternity and adoption pay is going up from £128.73 to £135.45 per week.
Statutory Sick Pay (SSP) rises from £81.60 to £85.85 per week.
Pensions
From 9 April the full basic state pension will rise by £5.30 to £107.45.
Savings
The Individual Savings Account (ISA) allowance rises to £11,280.
Up to £5,640 of this can be saved in cash with one Isa provider. The remainder can be invested in stocks and shares with either the same or a different ISA provider.
Child Tax Credits
The child element of child tax credits, which is paid to support lower income families, rises by £135 on 6 April.
There is no change to the couple and lone-parent elements of working tax credit.
Inheritance Tax
The first £325,000 of inheritance when somebody dies remains exempt from inheritance tax. However the rate of inheritance tax for amounts over £325,000 will be cut from 40% to 36% for estates that leave 10% or more to charity.
