New statutory rates announced plus guidance on tax and childcare
The new increased rates for Statutory Sick Pay, Statutory Maternity Pay, Statutory Adoption Pay and Statutory Paternity Pay, which will come into effect in April 2009, have been published by HM Revenue and Customs. It is proposed that:
– with effect from 6 April 2009 Statutory Sick Pay will increase to £79.15 (from £75.40) per week;
– the standard rate of Statutory Maternity Pay, Statutory Adoption Pay and Statutory Paternity Pay will increase to £123.06 (from £117.18) per week for payment weeks beginning on or after 5 April 2009;
– the weekly lower earnings limit applying to National Insurance contributions below which employees are not entitled to SSP, SMP, SAP or SPP will increase from £90 to £95.
The HMRC also released Guidance, on how employers may help their employees with childcare costs in a way which is wholly or partially free from income tax and National Insurance contributions (NICs). The guidance covers three types of employer supported childcare that can be either partially or wholly tax and NICs exempt, if the relevant conditions are met:
Workplace nurseries: free of income tax and NICs.
Directly contracted commercial nurseries or childminders: first £55 per week is tax and NICS free.
Childcare vouchers: first £55 per week is tax and NICs free.
This provides summary information and comment on the subject areas covered. Where employment tribunal and appellate court cases are reported, the information does not set out all of the facts, the legal arguments presented and the judgments made in every aspect of the case. Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, we cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.
