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2009-10 statutory payment rates announced
16/12/2008, by Sarah Laing, Tax News - Business Tax
Rating: 4/5 from 17 people

HMRC have announced the proposed rates for certain statutory payments for 2009-10, although at they are still subject to Parliamentary approval in the New Year.

Lower Earnings Limit

The Lower Earnings limit for 2009-2010 is: Weekly £95 and Monthly £412

Statutory Sick Pay (SSP)

The weekly rate for days of sick absence commencing on or after, 6 April 2009 is £79.15.

SSP recovery under the Percentage Threshold Scheme (PTS)

There has been no change to the Percentage Threshold Scheme if you qualify under the scheme you can recover the whole of the amount by which your total SSP liability exceeds the 13 per cent of gross Class 1 National Insurance contributions (NICs) figure.

Statutory Maternity Pay (SMP)

The amount of SMP paid to an employee for payment weeks starting on or after Sunday 5 April 2009 is:

  • first six weeks of payment - the earnings-related rate, which is 90 per cent of the employee's Average Weekly Earnings
  • remaining weeks - the lesser of the standard rate which is £123.06 a week or the earnings-related rate, which is 90 per cent of the employee's Average Weekly Earnings

Statutory Paternity Pay (SPP) and Statutory Adoption Pay (SAP)

For payment weeks starting on or after, 5 April 2009 the weekly rate of SPP and SAP is the lesser of £123.06 or 90 per cent of the employee's average weekly earnings.

Amount employers are entitled to recover or apply for funding for

From 5 April 2009 employers who do not qualify for Small Employer's Relief (SER) can recover 92 per cent of the SMP/SPP/SAP paid to their employees.

Employers who do qualify for SER can recover 100 per cent of the SMP/SPP/SAP paid to their employees plus 4.5 per cent compensation.

For the 2009-2010 tax year a 'small employer' is an employer who paid (or was liable to pay) total gross Class 1 NICs of £45,000 or less in the individual employee's qualifying tax year. These are the same thresholds as last year.

About The Author

Sarah Laing
Editor, TaxationWeb News

Sarah is a Chartered Tax Adviser. She has been writing professionally since joining CCH Editions in 1998 as a Senior Technical Editor, contributing to a range of highly regarded publications including the British Tax Reporter, Taxes - The Weekly Tax News, the Red & Green legislation volumes, Hardman's, International Tax Agreements and many others. She became Publishing Manager for the tax and accounting portfolio in 2001 and later went on to help run CCH Seminars (including ABG Courses and Conferences).

Sarah originally worked for the Inland Revenue in Newbury and Swindon Tax Offices, before moving out into practice in 1991. She has worked for both small and Big 5 firms. She now works as a freelance author providing technical writing services for the tax and accountancy profession.

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