Contracted-out contributions and minimum payments for employers with Contracted-out Money Purchase Schemes

Transcription

1 CA National Insurance Contributions Tables Contracted-out s for employers with Contracted-out Money Purchase Schemes Use from 6 April 008 to 5 April 009 inclusive

2 Help further guidance Help further guidance about tax National Insurance (NICs) is available from the following sources. The Internet Go to our website at Your Employer CD-ROM Your Employer CD-ROM has most of the forms guidance you will need to run your payroll throughout the year. The CD-ROM has: a P calculator that will work out record your employees' tax, NICs Student Loan deductions every pay day with a linked P record of deductions that works out what you need to pay us. a range of other Calculators that work out car car fuel benefit, Statutory Payments Student Loan deductions. a P5 checker that tells you what gross pay tax to date figures to enter on the P for a new employee. There is also: a Learning Zone to help you underst payroll topics such as Statutory Payments, Student Loan deductions PAYE Online. a Payroll Basics section for new less experienced employers explaining what to do when employing someone for the first time. Employer Helpbooks Our Employer Helpbooks are designed to help you underst operate PAYE, NICs other payroll related matters. The Helpbooks are for guidance only, they are not comprehensive have no legal force. We also have many other leaflets booklets that give further guidance, for example CWG(008) Employer Further Guide to PAYE NICs CWG5(008) ClassA NICs on benefits in kind 80(008) Expenses Benefits - a tax guide 90(008) Employee travel - A tax NICs guide for employers. You can view, download print the full range of Helpbooks, booklets other forms guidance from our website at or your Employer CD-ROM. Or you can order copies from the Employer Orderline: from our website at by phone by fax Forms guidance in Braille, large print audio For details of employer forms guidance in Braille, larger print or audio call the Employer Orderline on ask to speak to the Customer Service Team. Yr Iaith Gymraeg Ffoniwch i dderbyn fersiynau Cymraeg o ffurflenni a chanllawiau. By phone - Employer Helplines (We may record calls for quality training purposes.) New employers New Employer Helpline employers with less than years payroll experience Monday to Friday 08:00-0:00 Saturday Sunday 08:00-7:00 Employers with more than Employer Helpline years payroll experience 0857 Monday to Friday 08:00-0:00 Saturday Sunday 08:00-7:00 If you have a hearing or speech impairment, (only people with specialised use a textphone equipment such as Mincom are able to use this service.) A list of Helplines opening hours is available on our website at on your CD-ROM, in your Employer Bulletin. Your HM Revenue & Customs office Your own HM Revenue & Customs office can also help you. All our office contact details are on our website at Please tell us your Employer reference which is on correspondence from your HM Revenue & Customs office. In Person We can offer you education support on all aspects of your payroll explaining what you need to do the deadlines you need to meet the forms you need to fill in the records you need to keep. We also have a range of workshops which are free of charge on many payroll topics. You can get further information about the workshops from our website at or you can call the New Employer Helpline on Employer Helpline on 0857 Online Services For information about our online services go to For help assistance using our online services contact the Online Services Helpdesk. E mail helpdesk@ir-efile.gov.uk telephone open 7 days a week 08:00-0:00.

3 Contents page Save money - avoid errors Which National Insurance tables to use Layout of these tables Using these tables to work out NICs 5 limits NIC rates 7 An example of working out recording NICs using the exact percentage method, where the employee is a member of your Contracted-out Money Purchase 8 An example of working out NICs using these tables recording figures on form P 9 F - Weekly table for Contracted-out Money Purchase stard rate 0 F - Monthly table for Contracted-out Money Purchase stard rate G - Weekly table for Contracted-out Money Purchase reduced rate 8 G - Monthly table for Contracted-out Money Purchase reduced rate 5 S - Weekly table for Contracted-out Money Purchase where employee has deferment 65 S - Monthly table for Contracted-out Money Purchase where employee has deferment 78 Working out recording NICs where employee s total the 9 Additional gross pay table 9 page Contracted-out Money Purchase s 96 Weekly table for Contracted-out Money Purchase s - Table F 99 Monthly table for Contracted-out Money Purchase s - Table F 06 Weekly table for Contracted-out Money Purchase s - Table G Monthly table for Contracted-out Money Purchase s - Table G 0 Weekly table for Contracted-out Money Purchase s - Table S 7 Monthly table for Contracted-out Money Purchase s - Table S Changes for the tax year At the time this leaflet was printed, changes in the rates of National Insurance for the tax year were still subject to Parliamentary approval. Should Parliamentary approval not be obtained, HM Revenue & Customs will inform you of any further changes before 6 April 008.

4 Save money - avoid errors You may find this checklist useful when completing your Employer Annual Returns Have you used the correct P P? P must show Year to April 009 in the left h corner. P must show in the right h corner. You may find this checklist useful when completing your end of year returns Have you used the correct National Insurance tables, or percentage rates - are they for the current year? Do you hold a valid certificate (CA9, CF8 or CF80A) for every married woman or widow for whom you deduct category B, E or G reduced rate? If not, deduct full rate at category A, D or F Have you any employees nearing State Pension age? Check their date of birth before you decide which contribution category to use. Use category C for employees for whom you hold a valid age exemption certificate When completing your Ps: - have you shown the employee s full name, National Insurance number, where known, address date of birth? - is the correct category of contribution shown? This is usually either A, B, C, D, E, F, G J, L or S - have you checked that your addition is correct before entering the contribution amounts (both sides of P added up carried forward)? Is the information from every P summarised on your P5? Do you operate a company pension that is contracted-out of State Second Pension, previously known as the State Related Pension Scheme? If so, don t forget to show your Contracted-out Number on your P5. Reminder - if the contribution category is F, G or S, or mariners equivalent or Stakeholder Pension don t forget to show the relevant Scheme Contracted-out Number on the P. Something you may wish to consider throughout the year to make sure the correct information is held Make sure your staff know they must notify you HM Revenue & Customs National Insurance Contributions Office of any change in circumstances, for example, change of address, change of name particularly divorce if they pay category B, E or G. Software Has your software been upgraded for ?

5 Which National Insurance Tables to use You must use the correct Tables in calculating the NICs due on your employee s Check you are using the Tables for If your employee is under 6 years of age there is no NICs liability. Is your employee State Pension age or over? Yes Use Table Letter C (see leaflet CA) No Is your employee a member of your Contracted-out occupational pension? No Does your employee have another job where they already pay NICs on at, or above, the Upper Limit you hold form CA700? No Is your employee a married woman or widow who is entitled to pay reduced rate NICs? Yes Yes No Yes Use Table Letter J (see leaflet CA8) Use Table Letter B (see leaflet CA) Use Table Letter A (see leaflet CA8) Is your Contracted-out Salary Related? Yes Does your employee have another job where they already pay NICs on at, or above, the Upper Limit you hold form CA700? No Is your employee a married woman or widow who is entitled to pay reduced rate NICs? Yes Yes No No Use Table Letter L (see leaflet CA9) Use Table Letter E (see leaflet CA9) Use Table Letter D (see leaflet CA9) Is your Contracted-out Money Purchase? Yes Does your employee have another job where they already pay NICs on at, or above, the Upper Limit you hold form CA700? No Is your employee a married woman or widow who is entitled to pay reduced rate NICs? Yes Yes No Use Table Letter S (see leaflet CA) Use Table Letter G (see leaflet CA) Use Table Letter F (see leaflet CA) If you employ mariners, the National Insurance Tables, CA, gives details of category s, rates limits to use. Important - please note: NIC Tables are renewed every Tax Year. These can be requested from the Employer Orderline on Check you are using the Tables for You must use the correct Tables when calculating the NICs due on your employee s.

6 Layout of these tables The first figure in each table is the Lower Limit (LEL) ( 90 weekly or 90 monthly). This is because NIC liability only arises when the employee s total in the period reach the LEL, even though no NICs are actually payable on those. Both the employee the employer pay NICs only when the employee s the Threshold (ET) ( 05 weekly or 5 monthly). But, for stard rate NICs, between the LEL are used to protect the employee s entitlement to benefit. The employee the employer pay NICs at the appropriate main percentage rate on between the Upper Limit (). The last figure in each table is the ( 770 weekly or 7 monthly). This is because employee s are due only at a rate of % on. The employer pays at the rate of.8% on earning. The figures in the left h column of each table show steps between the LEL the. The NIC liability for each step is based on the limits percentage rates shown on page 7 with the exception of the LEL, ET is calculated at the mid point of the steps. Therefore, you your employee may pay slightly more or less than if you used the exact percentage method to calculate the NICs due. In addition, if you have your own occupational pension which is contracted-out of the State Second Pension, the NIC rebates due between the LEL to which the employee /or employer are entitled have been taken into account in the amount of NICs shown in columns d. Please note, depending on the level of the employee s, the resulting total NICs figure can be a negative amount. This is denoted by an R immediately before the entry in column d. Where the employee s total fall between the LEL the, if the exact figure is not shown in the tables, use the next smaller figure shown. Where the employee s total the, see page 9. For instructions on how to complete from P, see the Employer Helpbooks. An example form P is also shown on page 9. Important message You must not use the tables in this leaflet to work out NICs if you have a Contracted-out Salary Related Scheme. If you have a Salary Related Scheme use the tables in CA9 National Insurance Tables: Contracted-out for employers with Contracted-out Salary Related Schemes.

7 Using these tables to work out NICs Introduction About these tables You can work out NICs by using either: these tables, or the exact percentage method. For information about using the exact percentage method, please see the Helpbook E Day-to-day payroll. For general information about NICs, see the Employer Helpbooks. Are you using the correct tables? It is very important that you use the right table for each employee. Use these tables only between 6 April April 009, that is the tax year. Only use the tables if: you have your own occupational pension which is contracted-out of the State Second Pension, previously known as State Related Pension Scheme it is a Contracted-out Money Purchase Scheme or Contracted-out Money Purchase Stakeholder Pension Scheme or the money purchase part of a Contracted-out Mixed Benefit Scheme, the employee is a member of the. If you have such a, you will have been allocated an Contracting-out Number by HM Revenue & Customs. Do not use these tables for: employees in a Contracted-out Salary Related Scheme or in the salary related part of a Contracted-out Mixed Benefit Scheme. If you have one, use the tables in the National Insurance Tables CA9 Contracted-out for employers with Contracted-out Salary Related Schemes, for these employees men who are aged 65 or over women who are aged 60 or over, or employees who choose an Appropriate Personal Pension or Appropriate Personal Pension Stakeholder Pension instead of - a contracted-out occupational pension, or This leaflet contains: contribution tables for working out NICs, tables for working out the s to be made to your Occupational Pension Scheme administrators. The three different sets of tables under s F, G S each contain two tables, for weekly pay intervals, monthly pay intervals. The s F, G S correspond with the table under which NICs are payable. Identifying the correct table to use Table F Use this table for: all male employees aged 6 to 6 who are in your Contracted-out Money Purchase Scheme or Contracted-out Money Purchase Stakeholder Pension Scheme or the money purchase part of your Contracted-out Mixed Benefit Scheme, all female employees aged 6 to 59 who are in your Contracted-out Money Purchase Scheme or Contracted-out Money Purchase Stakeholder Pension Scheme or the money purchase part of your Contracted-out Mixed Benefit Scheme, paying stard rate employee s NICs. Table G Use this table for married women or widows: aged under 60 who are in your Contracted-out Money Purchase Scheme or Contracted-out Money Purchase Stakeholder Pension Scheme or the money purchase part of your Contracted-out Mixed Benefit Scheme, who are entitled to pay employee s NICs at the reduced rate. For these women, you must have a valid form CA9 or CF8, Certificate of Election, or form CF80A, Certificate of Reduced Liability. - State Second Pension, previously known as the State Related Pension Scheme. Use the National Insurance Tables CA8 Not contractedout for employers for these employees. 5

8 Table S Use this table for employees who are in your Contractedout Money Purchase Scheme or Contracted-out Money Purchase Stakeholder Pension Scheme or the money purchase part of your Contracted-out Mixed Benefit Scheme, for whom you hold form CA700 authorising deferment of employee s NICs. If you are unhappy with our service If you are unhappy with any aspect of the service you have received from HM Revenue & Customs, you should complain to the manager at the office you have been dealing with. How to use these tables Step Action Decide whether table, F, G or S weekly or monthly is the right table for the employee Look up the employee s gross pay in the left h column of the table. If the employees total fall between the LEL the the exact amount is not shown, use the lower amount closest to the exact gross pay. If the employee s total the, see page 9 Record the figures in each column of the table onto the employee s Deductions Working Sheet, form P or substitute. See the example on page 9. Adapting these tables for pay intervals other than weekly or monthly If the employee is paid in multiples of a week or month Step Action Divide the pay into equal weekly or monthly amounts to get an average weekly or monthly amount Fnd the amount of NICs due for the average weekly or monthly amount Multiply the amount of NICs by the number of weeks or months that the are paid for Rcord the multiplied amounts on their form P Deductions Working Sheet. To adapt these tables to work out NICs for a company director, see leaflet CA National Insurance for Company Directors. 6

9 limits NIC rates contribution contribution NIC rebate on above the NIC rebate on above the limits Contribution Table F Contribution Table G Contribution Table S Table s F, G S (Applies to contribution category s F S only) Below 90 weekly, or Below 90 monthly, or Below,680 yearly Nil Nil Nil Nil Nil Nil 90 to 05 weekly, or 90 to 5 monthly, or,680 to 5,5 yearly 0% 0% 0% 0% 05.0 to 770 weekly, or 5.0 to 7 monthly, or 5,5.0 to 0,00 yearly Over 770weekly, or over,7 monthly, or over 0,00 yearly 9.% on above 9.% on ET, up to the, then % on all.85% on above.85% on ET, up to the, then % on all % on above % on all above.% on above.% on ET, up to the, then.8% on all above the.6% on from 90.0, up to 05 (or monthly or annual equivalents).% on from 90.0, up to 05 (or monthly or annual equivalents) 7

10 An example of working out recording NICs using the exact percentage method, where the employee is a member of your Contracted-out Money Purchase A monthly paid male employee in your Contracted-out Money Purchase earns 99.5, payable on 9 April 008 (tax month ). NICs are due under Monthly Table F. Primary (employee s) : (99.5 5) x 9.% = 76.5 x 9.% =.758 =.76 Less employee s NIC rebate due on between the LEL : (5 90) x.6% =.0 Primary (employee s) after offset of NIC rebate to be entered in column of Form P:.76.0 =.75 Secondary (employer s) : (99.5 5) x.% = 76.5 x.% = 5.8 = 5.8 Less employer s NIC rebate due on between the LEL : (5 90) x.% = 0.88 Secondary (employer s) after offset of NIC rebate: = 5.0 (employee s employer s) to be entered in column d of Form P: = 97.5 Extract from Form P For tips on completing form P, see the Employer Helpbooks. For an example of a completed form P, see the Helpbook E0 Finishing the tax year up to 5 April

11 An example of working out NICs using these tables recording figures on form P Example A monthly paid male employee in contracted-out employment earns 88.5, payable on 9 April 008 (tax month ). NICs are due under Monthly Table F. The nearest lower figure to 88.5 is 88 Record the figures shown in the table onto the employee s form P. Extract from Monthly table F up to are the ET, up to the ET Extract from Form P For tips on completing form P, see the Employer Helpbooks. For an example of a completed form P, see the Helpbook E0 Finishing the tax year up to 5 April

12 Weekly table for Contracted-out Money Purchase stard rate for use from 6 April 008 to 5 April 009 Table F Use this table for employees in your Contracted-out Money Purchase Scheme or Contracted-out Money Purchase Stakeholder Pension Scheme or the money purchase part of your Contracted-out Mixed Benefit Scheme,who are age 6 or over under State Pension age (65 for men, 60 for women). Do not use this table for married women or widows who have the right to pay reduced rate employee s, see Table E employees who are State Pension age or over, see leaflet CA employees in your Contracted-out Money Purchase Scheme or Contracted-out Money Purchase Stakeholder Pension Scheme or the money purchase part of your Contracted-out Mixed Benefit Scheme for whom you hold form CA700, see Table S employees who have an Appropriate Personal Pension, or an Appropriate Personal Pension Stakeholder Pension, see leaflet CA8 employees contracted-out in a Contracted-out Salary Related Scheme or in the salary related part of a Contracted-out Mixed Benefit Scheme, see leaflet CA9. Completing Deductions Working Sheet, form P or substitute enter F the Scheme Contracting-out Number in the space provided in the End of Year Summary box of form P copy the figures in columns - of the table to columns - of form P on the line next to the tax week in which the employee is paid. If the employee s total fall between the LEL the the exact gross pay is not shown in the table, use the next smaller figure shown. If the employee s total the, see page 9. The figures in the left h column of each table show steps between the LEL the. The NICs liability for each step, with the exception of the LEL, ET, is calculated at the mid-point of the steps so you your employee may pay slightly more or less than if you used the exact percentage method. are ET, up to the ET up to the Up to No NIC liability, make no entries on forms P P R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R for information only - do not enter on form P Deductions Working Sheet

13 Weekly table Table F up to the are ET, up to the ET for information only - do not enter on form P Deductions Working Sheet

14 Table F Weekly table up to the are ET, up to the ET for information only - do not enter on form P Deductions Working Sheet

15 Weekly table Table F up to the are ET, up to the ET for information only - do not enter on form P Deductions Working Sheet

16 Table F Weekly table up to the are ET, up to the ET for information only - do not enter on form P Deductions Working Sheet

17 Weekly table Table F up to the are ET, up to the ET for information only - do not enter on form P Deductions Working Sheet 5

18 Table F Weekly table up to the are ET, up to the ET for information only - do not enter on form P Deductions Working Sheet

19 Weekly table Table F up to the are ET, up to the ET for information only - do not enter on form P Deductions Working Sheet 7

20 Table F Weekly table up to the are ET, up to the ET for information only - do not enter on form P Deductions Working Sheet

21 Weekly table Table F up to the are ET, up to the ET for information only - do not enter on form P Deductions Working Sheet 9

22 Table F Weekly table up to the are ET, up to the ET for information only - do not enter on form P Deductions Working Sheet

23 Weekly table Table F up to the are ET, up to the ET for information only - do not enter on form P Deductions Working Sheet

24 Table F Weekly table up to the are ET, up to the ET for information only - do not enter on form P Deductions Working Sheet If the employee s gross pay is over 770, go to page 9

25 Monthly table for Contracted-out Money Purchase stard rate for use from 6 April 008 to 5 April 009 Table F Use this table for employees in your Contracted-out Money Purchase Scheme or Contracted-out Money Purchase Stakeholder Pension Scheme or the money purchase part of your Contracted-out Mixed Benefit Scheme,who are age 6 or over under State Pension age (65 for men, 60 for women). Do not use this table for married women or widows who have the right to pay reduced rate employee s, see Table E employees who are State Pension age or over, see leaflet CA employees in your Contracted-out Money Purchase Scheme or Contracted-out Money Purchase Stakeholder Pension Scheme or the money purchase part of your Contracted-out Mixed Benefit Scheme for whom you hold form CA700, see Table S employees who have an Appropriate Personal Pension, or an Appropriate Personal Pension Stakeholder Pension, see leaflet CA8 employees contracted-out in a Contracted-out Salary Related Scheme or in the salary related part of a Contracted-out Mixed Benefit Scheme, see leaflet CA9. Completing Deductions Working Sheet, form P or substitute Enter F the Scheme Contracting-out Number in the space provided in the End of Year Summary box of form P. Copy the figures in columns - of the table to columns - of form P on the line next to the tax week in which the employee is paid. If the employee s total fall between the LEL the the exact gross pay is not shown in the table, use the next smaller figure shown. If the employee s total the, see page 9. The figures in the left h column of each table show steps between the LEL the. The NICs liability for each step, with the exception of the LEL, ET, is calculated at the mid-point of the steps so you your employee may pay slightly more or less than if you used the exact percentage method. up to the are ET, up to the ET Up to No NIC liability, make no entries on forms P P R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R for information only - do not enter on form P Deductions Working Sheet

26 Table F Monthly table up to are the ET, up to the ET for information only - do not enter on form P Deductions Working Sheet

27 Monthly table Table F up to are the ET, up to the ET for information only - do not enter on form P Deductions Working Sheet 5

28 Table F Monthly table up to are the ET, up to the ET for information only - do not enter on form P Deductions Working Sheet

29 Monthly table Table F up to are the ET, up to the ET for information only - do not enter on form P Deductions Working Sheet 7