PAYE Rates and Thresholds for 2012/2013


A Happy New Tax Year to you all.  Whilst you are all busy preparing your year end here is a quick look at the new rates and thresholds for tax year 2012/2013.  For more details please visit our Tax and NI page or download the employer helpbook from




Tax codes suffix with “L” go up by 63 points making the new standard tax code 810L which gives you a tax free allowance of:


£8105 per annum

£675 per month

£155 per week


Annual Tax thresholds have changed to:


20% on earnings up to £34,370

40% on earnings from £34,371 to £150,000

50% on earnings above £150,000


National Insurance

Employees:  12% of earnings above £634 per month and 2% on earnings above £3540 per month


Employers: 13.8% of earnings above £624 per month


Statutory payments

SSP is £85.85 per week


SMP is the lesser of 90% of their average weekly earnings or £135.45 per week after the first 6 weeks


SPP is the lesser of 90% of average weekly earnings and £135.45 per week


Student Loans


Deductions are 9% of earnings above:

£15,795 per annum

£1,316 per month

£303 per week

New Agency Workers Regulations

The Agency Workers Regulations come into force on 1 October 2011. They will give you an entitlement to the same basic employment and working conditions as if you’d been recruited directly.

The new rules mean that from day one of an assignment you’ll be entitled to use your workplace’s facilities, and get information on job vacancies.


After 12 weeks employment

After 12 weeks in the same job with the same hirer you’ll be entitled to equal treatment in:

  • pay
  • holidays
  • night work
  • rest periods/breaks
  • duration of working time

The new rules don’t mean that you become a permanent employee of the hirer after 12 weeks.

The regulations are not retrospective (back dated). Any time spent on an assignment before 1 October 2011 will not count towards the 12 week qualifying.  For more information please click here

New Minimum Wage Rates


from the 01/10/2011 the new National Minimum Wage rates coming in to affect, to see the new rate please click here.



Business Secretary Vince Cable said:

“More than 890,000 of Britain’s lowest-paid workers will gain from these changes. They are appropriate – reflecting the current economic uncertainty while at the same time protecting the UK’s lowest-paid workers. I would like to thank the LPC for doing a good job in difficult circumstances.”

Chairman of the LPC David Norgrove said:

“We welcome the Government’s acceptance of our recommendations. The Commission was again unanimous, despite all the economic uncertainties. We believe we have struck the right balance between the needs of low-paid workers and the challenges faced by businesses.”

As announced in the Budget the Government will invite the LPC in its next report to consider the best way to give business greater clarity on future levels of the National Minimum Wage, including consideration of two-year recommendations. This could provide greater certainty for businesses, reduce risks and help them plan employment and investment decisions.