CIPP Payroll Reference Book 2021-22_v1_210701_MemberOnly

Class 1b National Insurance

06/04/1994

640

810

1,200

580

750

1,200

06/04/1995

670

850

1,260

605

780

1,260

06/04/1996 COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS 710 890 1,320 640 820 1,320 06/04/1997 800 1,010 1,490 740 940 1,490 06/04/1998 1,010 1,280 1,890 1,280 1,890 1,890 06/04/1999 1,210 1,540 2,270 1,540 2,270 2,270 06/04/2000 1,700 2,170 3,200 2,170 3,200 3,200 06/04/2001 1,930 2,460 3,620 2,460 3,620 3,620 06/04/2002 2,240 2,850 4,200 2,850 4,200 4,200 Before 6th April 1993, the fuel scale charge was reduced by 50% for employees travelling 18,000 or more business miles per year. CLASS 1B NATIONAL INSURANCE Introduced on 6th April 1999, Class 1B contributions are chargeable as a lump sum on expenses, payments and benefits-in-kind taxed under a PAYE Settlement Agreement (PSA). Under such an agreement the tax liability is met by the employer as a lump sum settlement following agreement with HMRC. In a similar manner National Insurance Contributions are payable in a single lump sum assessable against the value of all items covered by the PSA, which would otherwise attract a Class 1 or Class 1A liability plus Class 1B NICs contributions levied on the grossed up tax payable by the employer under the PSA.

Class 1B Contribution Rates - from 6th April 2002 No printing, copying or reproduction permitted. Date from Rate % 11.8 06/04/2007 12.8 06/04/2012 12.8 06/04/2008 12.8 06/04/2013 12.8 06/04/2009 12.8 06/04/2014 12.8 06/04/2010 12.8 06/04/2015 12.8 06/04/2011 13.8 06/04/2016

Date from Rate %

Date from Rate %

06/04/2002

13.8

06/04/2003

13.8

06/04/2004

13.8

06/04/2005

13.8

06/04/2006

13.8*

*N.B.: No change to the Class 1B rate is expected before 2021, though at the time of publication no comment has been made about any changes.

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