Memo DMG 5/15
RATES FOR INCOME TAX, IS/JSA/ESA/SPC BENEFIT
RATES AND SOCIAL SECURITY CONTRIBUTIONS FROM
APRIL 2015
Contents
Paragraphs
Introduction
1
Uprating
Benefit rates
2
Trade disputes
3 - 4
Housing costs non-dependant deductions -
5
IS/JSA(IB)/ESA(IR)/SPC
Third party deductions for miscellaneous accommodation costs
6
Social Security Contributions
Class 1 contributions
7
Class 2 contributions
8
Small profits threshold
9
Class 4 contributions
10
Class 4 rate
11
Income Tax
Allowances
12 - 13
Employment Rights - Increase of Limits
14
The maximum weekly amount
15
Statutory guarantee payments
16
Carer’s Allowance – Increase of earnings limit
17
Annotations
Contacts
INTRODUCTION
1
This memo contains details about the income tax and the Social Security contribution
rates for 2015/2016 and the increase in IS/JSA/ESA/SPC benefit rates from 6.4.15.
The rates are introduced by t
he Welfare Benefits Up-rating Order 2015 (SI 2015/30),
t
he Social Security Up-rating order 2015 (SI 2015/457), t
he Social Security
(Contributions) (Re-rating and National Insurance Funds Payments) Order 2015 (SI
2015/588), and th
e Social Security (Contributions) (Limits and Thresholds)
(Amendment) Regulations 2015 (SI 2015/577). This memo also contains guidance on
t
he Employment Rights (Increase of Limits) Order 2015 (SI 2015/226) and th
e Social
Security (Invalid Care Allowance) (Amendment) Regulations 2015 (SI 2015/162).
UPRATING
Benefit rates
2
New rates of IS/JSA/ESA/SPC benefits will apply from the first day of the first benefit
week to commence on or after 6.4.15. DMs can find the new rates in benefit desk aids
and should bear them in mind when reading examples in the DMG that contain benefit
rates.
Trade disputes
3
For IS, the relevant sum from the first day of the first benefit week which begins on or
after 6.4.15, is £40.501.
1 C & B Act, s 126(7)
4
For JSA, the prescribed sum from the first day of the first benefit week which begins
on or after 6.4.15, is £40.501.
1 JSA Regs, reg 172
Housing costs non-dependant deductions -
IS/JSA(IB)/ESA(IR)/SPC
5
Where a non-dependant lives with the claimant, a deduction from the allowable
housing costs may be appropriate (s
ee DMG 23756, DMG 44586 or
DMG 78500 et
seq.). S
ee Appendix 7 to DMG Chapter 23 for details of previous rates appropriate to
IS/JSA
, Appendix 5 to DMG Chapter 44 for details of previous rates appropriate to
ESA and
Appendix 4 to DMG Chapter 78 for details of previous rates appropriate to
SPC.
Gross weekly income
Deduction
less than
£129.00
£14.55
£129.00 to
£188.99
£33.40
£189.00 to
£245.99
£45.85
£246.00 to
£327.99
£75.05
£328.00 to
£407.99
£85.45
£408.00 or more
£93.80
Third party deductions for miscellaneous accommodation costs
6
The amount for personal expenses for the purposes of deductions for miscellaneous
accommodation costs is1
1.
for a single person, £24.00
2.
for a couple where both members are in accommodation where deductions for
miscellaneous accommodation costs are appropriate, £24.00 each
3.
in the case of a polygamous marriage, where more than one member of the
marriage is in accommodation where deductions for miscellaneous
accommodation costs is appropriate, £24.00 for each member in the
accommodation.
1 SS (C & P) Regs, Sch 9, para 4(2A); SS Benefits Uprating Regulations 2011, SI 2011 No. 830
SOCIAL SECURITY CONTRIBUTIONS
Class 1 contributions
7
From 6.4.15 the new earnings limits are as follows:
LEL
-
£112 weekly
UEL
-
£815 weekly
Class 2 contributions
8
The ordinary Class 2 rate is £2.75 per week.
The share fisherman rate is £3.40.
Small profits threshold
9
The small profits threshold limit is £5,885.
Class 4 contributions
10
The rates for Class 4 contributions are:
Lower level
-
£8,060 per year
Higher level
-
£42,358 per year
Class 4 rate
11
£8,060 to £42,358
-
9%
Above £42,385
-
2%
INCOME TAX
Allowances
12
The rates for allowances are
Personal
-
under 65
£10,600
-
65-74
£10,600
-
75 and over
£10,660
Married couple
-
over 75
£8,355
13
Rates
The rates for tax are
Basic rate of 20%
-
up to £31,785
Higher rate 40%
-
over £31,785
Additional rate 45%
-
over £150,000
EMPLOYMENT RIGHTS – INCREASE OF LIMITS
14
From 6.4.15 the rates for the maximum weekly amount and statutory guarantee
payments increase1.
1 The Employment Rights (Increase of Limits) Order 2015, art 1(1)
The maximum weekly amount
15
The maximum weekly amount from 6.4.15 is increased from £464 to £4751.
1 The Employment Rights (Increase of Limits) Order 2015, Sch, para 8
Statutory guarantee payments
16
The daily rate of the statutory guarantee payment from 6.4.15 is increased from £25 to
£261.
1 The Employment Rights (Increase of Limits) Order 2015, Sch, para 4
CARER’S ALLOWANCE – INCREASE OF EARNINGS LIMIT
17
The Carer’s allowance weekly earnings limit from 6.4.15 is increased from £102 to
£1101
1.The Social Security (Invalid Care Allowance) Regulation, reg 8(1).
ANNOTATIONS
Please annotate the number of this memo (Memo DMG 5/15) against the following
DMG paragraphs:
Appendix 1, 2 & 6 to Chapter 15, Appendix 1 to Chapter 21, Appendix 7 to Chapter
23, Appendix 2 & 3 to Chapter 26, Appendix 1 & 2 to Chapter 27, 33413, Appendix 5
to Chapter 44, 46223, Appendix 2 & 3 to Chapter 49, 60051, Appendix 4 to Chapter
60, Appendix 4 to Chapter 78, 79422 and Appendix 1 & 2 to Chapter 86.
CONTACTS
If you have any queries about this memo, please write to Decision Making and
Appeals (DMA) Leeds, 1S25, Quarry House, Leeds. Existing arrangements for such
referrals should be followed, as set out in Memo DMG 03/13 - Obtaining legal advice
and guidance from DMA Leeds.
DMA Leeds: March 2015
Document Outline