Student finance: Eligibility - GOV.UK

Rates and thresholds for employers 2019 to 2020

Unless in any other case acknowledged, these figures apply from 6 April 2019 to five April 2020.

PAYE tax and Class 1 National Insurance contributions

You usually function PAYE as a part of your payroll so HMRC can accumulate Income Tax and National Insurance out of your workers.

Your payroll software program will calculate how a lot tax and National Insurance to deduct out of your workers’ pay.

Tax thresholds, charges and codes

The quantity of Income Tax you deduct out of your workers relies on their tax code and the way a lot of their taxable earnings is above their Personal Allowance.

England and Northern Ireland

PAYE tax charges and thresholds 2019 to 2020
Employee private allowance £240 per week
£1,042 monthly
£12,500 per 12 months
English and Northern Irish primary tax charge 20% on annual earnings above the PAYE tax threshold and as much as £37,500
English and Northern Irish greater tax charge 40% on annual earnings from £37,501 to £150,000
English and Northern Irish extra tax charge 45% on annual earnings above £150,000

Scotland

PAYE tax charges and thresholds 2019 to 2020
Employee private allowance £240 per week
£1,042 monthly
£12,500 per 12 months
Scottish starter tax charge 19% on annual earnings above the PAYE tax threshold and as much as £2,049
Scottish primary tax charge 20% on annual earnings from £2,050 to £12,444
Scottish intermediate tax charge 21% on annual earnings from £12,445 to £30,930
Scottish greater tax charge 41% on annual earnings from £30,931 to £150,000
Scottish high tax charge 46% on annual earnings above £150,000

Wales

PAYE tax charges and thresholds 2019 to 2020
Employee private allowance £240 per week
£1,042 monthly
£12,500 per 12 months
Welsh primary tax charge 20% on annual earnings above the PAYE tax threshold and as much as £37,500
Welsh greater tax charge 40% on annual earnings from £37,501 to £150,000
Welsh extra tax charge 45% on annual earnings above £150,000

Emergency tax codes

The emergency tax codes from 6 April 2019 are:

  • 1250L W1
  • 1250L M1
  • 1250L X

Find out extra about emergency tax codes.

Class 1 National Insurance thresholds

You can solely make National Insurance deductions on earnings above the Lower Earnings Limit (LEL).

Class 1 National Insurance thresholds 2019 to 2020
LEL £118 per week
£512 monthly
£6,136 per 12 months
Primary Threshold (PT) £166 per week
£719 monthly
£8,632 per 12 months
Secondary Threshold (ST) £166 per week
£719 monthly
£8,632 per 12 months
Upper Secondary Threshold (beneath 21) (UST) £962 per week
£4,167 monthly
£50,000 per 12 months
Apprentice Upper Secondary Threshold (apprentice beneath 25) (AUST) £962 per week
£4,167 monthly
£50,000 per 12 months
Upper Earnings Limit (UEL) £962 per week
£4,167 monthly
£50,000 per 12 months
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Class 1 National Insurance charges

Employee (main) contribution charges

Deduct main contributions (worker’s National Insurance) out of your workers’ pay by means of PAYE.

National Insurance class letter Earnings at or above LEL as much as and together with PT Earnings above the PT as much as and together with UEL Balance of earnings above UEL
A 0% 12% 2%
B 0% 5.85% 2%
C nil nil nil
H (apprentice beneath 25) 0% 12% 2%
J 0% 2% 2%
M (beneath 21) 0% 12% 2%
Z (beneath 21 – deferment) 0% 2% 2%

Employer (secondary) contribution charges

You pay secondary contributions (employer’s National Insurance) to HMRC as a part of your PAYE invoice.

Pay employers’ PAYE tax and National Insurance.

National Insurance class letter Earnings at or above LEL as much as and together with ST Earnings above ST as much as and together with UEL, UST, AUST Balance of earnings above UEL, UST, AUST
A 0% 13.80% 13.80%
B 0% 13.80% 13.80%
C 0% 13.80% 13.80%
H (apprentice beneath 25) 0% 0% 13.80%
J 0% 13.80% 13.80%
M (beneath 21) 0% 0% 13.80%
Z (beneath 21 – deferment) 0% 0% 13.80%

Class 1A National Insurance: bills and advantages

You should pay Class 1A National Insurance on work advantages you give to your workers, instance an organization cell phone. You report and pay Class 1A on the finish of every tax 12 months.

National Insurance class 2019 to 2020 charge
Class 1A 13.8%

Pay employers’ Class 1A National Insurance.

Class 1B National Insurance: PAYE Settlement Agreements (PSAs)

You pay Class 1B National Insurance if in case you have a PSA. This permits you to make one annual cost to cowl all of the tax and National Insurance due on small or irregular taxable bills or advantages to your workers.

National Insurance class 2019 to 2020 charge
Class 1B 13.8%

Pay Class 1B National Insurance.

National Minimum Wage

The National Minimum Wage is the minimal pay per hour nearly all staff are entitled to by regulation. Use the National Minimum Wage calculator to test in case you’re paying a employee the National Minimum Wage or in case you owe them funds from previous years.

These charges apply from 1 April 2019.

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Category of employee Hourly charge
Aged 25 and above (nationwide dwelling wage charge) £8.21
Aged 21 to 24 inclusive £7.70
Aged 18 to twenty inclusive £6.15
Aged beneath 18 (however above obligatory faculty leaving age) £4.35
Apprentices aged beneath 19 £3.90
Apprentices aged 19 and over, however within the first 12 months of their apprenticeship £3.90

National Minimum Wage charges for earlier years.

Statutory Maternity, Paternity, Adoption and Shared Parental Pay

Use the maternity and paternity calculator for employers to calculate your worker’s Statutory Maternity Pay (SMP), paternity or adoption pay, their qualifying week, common weekly earnings and go away interval.

These charges apply from 7 April 2019.

Type of cost or restoration 2019 to 2020 charge
SMP – weekly charge for first 6 weeks 90% of the worker’s common weekly earnings
SMP – weekly charge for remaining weeks £148.68 or 90% of the worker’s common weekly earnings, whichever is decrease
Statutory Paternity Pay (SPP) – weekly charge £148.68 or 90% of the worker’s common weekly earnings, whichever is decrease
Statutory Adoption Pay (SAP) – weekly charge for first 6 weeks 90% of worker’s common weekly earnings
SAP – weekly charge for remaining weeks £148.68 or 90% of the worker’s common weekly earnings, whichever is decrease
Statutory Shared Parental Pay (ShPP) – weekly charge £148.68 or 90% of the worker’s common weekly earnings, whichever is decrease
SMP/SPP/ShPP/SAP – proportion of your funds you possibly can get well from HMRC 92% in case your complete Class 1 National Insurance (each worker and employer contributions) is above £45,000 for the earlier tax 12 months

103% in case your complete Class 1 National Insurance for the earlier tax 12 months is £45,000 or decrease

Statutory Sick Pay (SSP)

The identical weekly SSP charge applies to all workers. However, the quantity you need to really pay an worker for every day they’re off work on account of sickness (the each day charge) relies on the variety of ‘qualifying days’ (QDs) they work every week.

Use the SSP calculator to work out your worker’s sick pay, or use these charges.

Unrounded each day charges Number of QDs in week 1 day to pay 2 days to pay 3 days to pay 4 days to pay 5 days to pay 6 days to pay 7 days to pay
£13.4642 7 £13.47 £26.93 £40.40 £53.86 £67.33 £80.79 £94.25
£15.7083 6 £15.71 £31.42 £47.13 £62.84 £78.55 £94.25  
£18.8500 5 £18.85 £37.70 £56.55 £75.40 £94.25    
£23.5625 4 £23.57 £47.13 £70.69 £94.25      
£31.4166 3 £31.42 £62.84 £94.25        
£47.1250 2 £47.13 £94.25          
£94.25 1 £94.25            
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Student loan and Postgraduate loan restoration

If your workers’ earnings are above the earnings threshold, document their student loan and postgraduate loan deductions in your payroll software program. It will mechanically calculate and deduct repayments from their pay.

Rate or threshold 2019 to 2020 charge
Employee earnings threshold for Student loan Plan 1 £18,935 per 12 months
£1,577.91 monthly
£364.13 per week
Employee earnings threshold for Student loan Plan 2 £25,725 per 12 months
£2,143.75 monthly
£494.71 per week
Student loan deductions 9%
Employee earnings threshold for Postgraduate loan £21,000 per 12 months
£1,750.00 monthly
£403.84 per week
Postgraduate loan deductions 6%

Company automobiles: Advisory Fuel Rates (AFRs)

Use AFRs to work out mileage prices in case you present firm automobiles to your workers.

These charges apply from 1 June 2020.

Engine measurement Petrol – quantity per mile LPG – quantity per mile
1400cc or much less 10 pence 6 pence
1401cc to 2000cc 12 pence 8 pence
Over 2000cc 17 pence 11 pence
Engine measurement Diesel – quantity per mile
1600cc or much less 8 pence
1601cc to 2000cc 9 pence
Over 2000cc 12 pence

Hybrid automobiles are handled as both petrol or diesel automobiles for this function.

Advisory Fuel Rates for earlier intervals.

Advisory Electricity Rate for absolutely electrical automobiles

Amount per mile – 4 pence.

Electricity isn’t a gasoline for automotive gasoline profit functions.

Employee automobiles: Mileage Allowance Payments (MAPs)

MAPs are what you pay your workers for utilizing their very own car for enterprise journeys.

You pays your workers an authorized quantity of MAPs annually with out having to report them to HMRC. To work out the authorized quantity, multiply your worker’s enterprise journey miles for the 12 months by the speed per mile for his or her car.

Find out extra about reporting and paying MAPs.

Type of car Rate per enterprise mile 2019 to 2020
Car For tax functions: 45 pence for the primary 10,000 enterprise miles in a tax 12 months, then 25 pence for every subsequent mile

For National Insurance functions: 45 pence for all enterprise miles

Motorcycle 24 pence for each tax and National Insurance functions and for all enterprise miles
Cycle 20 pence for each tax and National Insurance functions and for all enterprise miles

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