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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%
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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
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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            
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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

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