Updated Rates and Thresholds For Employers 2019 to 2020
England and Northern Ireland
| PAYE tax charges and thresholds | 2019 to 2020 |
|---|---|
| Employee private allowance | £240 per week £1,042 monthly £12,500 per yr |
| English and Northern Irish fundamental tax fee | 20% on annual earnings above the PAYE tax threshold and as much as £37,500 |
| English and Northern Irish increased tax fee | 40% on annual earnings from £37,501 to £150,000 |
| English and Northern Irish extra tax fee | 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 yr |
| Scottish starter tax fee | 19% on annual earnings above the PAYE tax threshold and as much as £2,049 |
| Scottish fundamental tax fee | 20% on annual earnings from £2,050 to £12,444 |
| Scottish intermediate tax fee | 21% on annual earnings from £12,445 to £30,930 |
| Scottish increased tax fee | 41% on annual earnings from £30,931 to £150,000 |
| Scottish high tax fee | 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 yr |
| Welsh fundamental tax fee | 20% on annual earnings above the PAYE tax threshold and as much as £37,500 |
| Welsh increased tax fee | 40% on annual earnings from £37,501 to £150,000 |
| Welsh extra tax fee | 45% on annual earnings above £150,000 |
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 yr |
| Primary Threshold (PT) | £166 per week £719 monthly £8,632 per yr |
| Secondary Threshold (ST) | £166 per week £719 monthly £8,632 per yr |
| Upper Secondary Threshold (below 21) (UST) | £962 per week £4,167 monthly £50,000 per yr |
| Apprentice Upper Secondary Threshold (apprentice below 25) (AUST) | £962 per week £4,167 monthly £50,000 per yr |
| Upper Earnings Limit (UEL) | £962 per week £4,167 monthly £50,000 per yr |
Class 1 National Insurance charges
Employee (main) contribution charges
Deduct main contributions (worker’s National Insurance) out of your staff’ 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 below 25) | 0% | 12% | 2% |
| J | 0% | 2% | 2% |
| M (below 21) | 0% | 12% | 2% |
| Z (below 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.
| 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 below 25) | 0% | 0% | 13.80% |
| J | 0% | 13.80% | 13.80% |
| M (below 21) | 0% | 0% | 13.80% |
| Z (below 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 staff, instance an organization cell phone. You report and pay Class 1A on the finish of every tax yr.
Also Read: National Insurance Contributions and Overview
| National Insurance class | 2019 to 2020 fee |
|---|---|
| Class 1A | 13.8% |
Class 1B National Insurance: PAYE Settlement Agreements (PSAs)
You pay Class 1B National Insurance when you’ve got 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 on your staff.
| National Insurance class | 2019 to 2020 fee |
|---|---|
| Class 1B | 13.8% |
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 the event you’re paying a employee the National Minimum Wage or in the event you owe them funds from previous years.
The charges under apply from 1 April 2019.
| Category of employee | Hourly fee |
|---|---|
| Aged 25 and above (nationwide residing wage fee) | £8.21 |
| Aged 21 to 24 inclusive | £7.70 |
| Aged 18 to twenty inclusive | £6.15 |
| Aged below 18 (however above obligatory college leaving age) | £4.35 |
| Apprentices aged below 19 | £3.90 |
| Apprentices aged 19 and over, however within the first yr of their apprenticeship | £3.90 |
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 depart interval.
The charges under apply from 7 April 2019.
| Type of cost or restoration | 2019 to 2020 fee |
|---|---|
| SMP – weekly fee for first 6 weeks | 90% of the worker’s common weekly earnings |
| SMP – weekly fee for remaining weeks | £148.68 or 90% of the worker’s common weekly earnings, whichever is decrease |
| Statutory Paternity Pay (SPP) – weekly fee | £148.68 or 90% of the worker’s common weekly earnings, whichever is decrease |
| Statutory Adoption Pay (SAP) – weekly fee for first 6 weeks | 90% of worker’s common weekly earnings |
| SAP – weekly fee for remaining weeks | £148.68 or 90% of the worker’s common weekly earnings, whichever is decrease |
| Statutory Shared Parental Pay (ShPP) – weekly fee | £148.68 or 90% of the worker’s common weekly earnings, whichever is decrease |
| SMP/SPP/ShPP/SAP – proportion of your funds you’ll be able to get better from HMRC | 92% in case your whole Class 1 National Insurance (each worker and employer contributions) is above £45,000 for the earlier tax yr
103% in case your whole Class 1 National Insurance for the earlier tax yr is £45,000 or decrease |
Statutory Sick Pay (SSP)
The similar weekly SSP fee applies to all staff. However, the quantity you have to truly pay an worker for every day they’re off work resulting from sickness (the every day fee) depends upon the variety of ‘qualifying days’ (QDs) they work every week.
Also Read: How To Claim Statutory Sick Pay
Use the SSP calculator to work out your worker’s sick pay, or use the charges under.
| Unrounded every 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 |
Student loan and Postgraduate loan restoration
If your staff’ earnings are above the earnings threshold, file their student loan and postgraduate loan deductions in your payroll software program. It will robotically calculate and deduct repayments from their pay.
| Rate or threshold | 2019 to 2020 fee |
|---|---|
| Employee earnings threshold for Student loan Plan 1 | £18,935 per yr £1,577.91 monthly £364.13 per week |
| Employee earnings threshold for Student loan Plan 2 | £25,725 per yr £2,143.75 monthly £494.71 per week |
| Student loan deductions | 9% |
| Employee earnings threshold for Postgraduate loan | £21,000 per yr £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 the event you present firm automobiles to your staff.
The charges under apply from 1 March 2019.
| Engine dimension | Petrol – quantity per mile | LPG – quantity per mile |
|---|---|---|
| 1400cc or much less | 11 pence | 7 pence |
| 1401cc to 2000cc | 14 pence | 8 pence |
| Over 2000cc | 21 pence | 13 pence |
Employee autos: Mileage Allowance Payments (MAPs)
MAPs are what you pay your staff for utilizing their very own car for enterprise journeys.
You pays your staff an permitted quantity of MAPs annually with out having to report them to HMRC. To work out the permitted quantity, multiply your worker’s enterprise journey miles for the yr by the speed per mile for his or her car.
| 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 yr, 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 |