Nasa Umbrella - April 11 Newsletter

Nasa Umbrella - April Newsletter 2011

Our April newsletter contains much important information for Nasa Umbrella contractors and housekeeping relating to the upcoming Easter break and those lovely Bank Holidays.  Details include:

• Budget 2011 - an update
• Easter Invoicing Schedule - VERY IMPORTANT!
• Updated Expenses Claim Form

Budget 2011

Announced as a Budget for growth, there certainly were lots of changes announced that have a direct effect on contractors working through Umbrella Companies.  We summarise the key points for you as a contractor below.

Tax Free Allowance and PAYE thresholds

The headline tax free allowance (or tax code) has increased from £6,475 per annum to £7,475 per annum.  As such the standard tax code will increase to 747L.

All those on a standard tax code may now earn an extra £1,000 per year before paying any PAYE taxes.  The threshold where the 40% tax bracket begins has also been lowered slightly to £35,000 plus the tax allowance (£42,475). This is detailed in the table below;

PAYE Bands		from	to
Exempt	0%	0	£7,475
Basic	20%	£7,475	£42,475
Higher	40%	£42,475	£150,000
Top	50%	£150,000	And above

Mileage rate increase

In recognition of  the spiralling costs of running a car, the top rate for claiming mileage has been increased to £0.45p per mile(for the first 10,000 miles) from 6^th April.

The rate remains at £0.25p per mile once you have reached the 10,000 mile threshold and also remains unchanged for motorcycles (£0.24p) and bicycles (£0.20p).

National Insurance rises

On the flip side to the increased tax free allowance, there are some movers and changers in the standard rates of National Insurances.

There has been a 1% increase across the board - so Employees NI will be charged at 12% (2% over the upper earnings threshold) and Employers NI will increase to 13.8% from 6^th April.  Details of this and the earnings thresholds can be found in the table below:

 

Employers NI Bands		from	to
Exempt	0%	0	£7,225
	13.8%	£7,225	And above
Employees NI Bands		from	to
Exempt	0%	0	£7,225
	12%	£7,225	£42,475
	2%	£42,475	And above

 

Easter INVOICING Schedules - VERY IMPORTANT

The Easter weekend draws near, and with the festivities of the Royal Wedding to enjoy, we also have an extra Bank Holiday.

Bank Holidays whilst enjoyable invariably bring about changes to your agencies standard payment and invoicing requirements.  The bank holidays in this period fall on FRIDAY 22^nd April, MONDAY 25^th April and FRIDAY 29^th April.

PLEASE CONTACT YOUR AGENCY IN THE FIRST INSTANCE.  Your agency will advise as to when your timesheets need to be authorised by, and when an invoice must be received in order to coincide with altered payment times.

Where you need Nasa to raise an invoice by a particular deadline - please make sure you send your timesheet at least 3 hours before your agency cut off.

Easter EXPENSES Schedules

Whilst it will be of course be business as usual at Nasa Umbrella throughout the period, there will be some altered cut off times for receiving expenses.

FOR WEEK ENDING 24^th April

Please ensure Nasa receives your expenses before 12 PM on Wednesday 20^th April.

Any expenses received after this date will be processed the following week (WE 1^st May)

FOR WEEK ENDING 1^st May

Please ensure Nasa receives your expenses before 12 PM on Wednesday 27^th April.

Any expenses received after this date will be processed the following week (WE 8^th May)

Updated Expenses Claim Form

You will also find attached to this email an updated 'Nasa Umbrella - Expenses Claim Form'.

This includes the updated mileage rate so please save and use this form going forward for all expense claims.