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Current Payroll News

PAYE RATES

PAYE tax rates and thresholds2018 to 2019
Employee personal allowance £228 per week
£988 per month
£11,850 per year
UK basic tax rate 20% on annual earnings above the PAYE tax threshold and up to £34,500
UK higher tax rate 40% on annual earnings from £34,501 to £150,000
UK additional tax rate 45% on annual earnings above £150,000

Scotland

PAYE tax rates and thresholds2018 to 2019
Employee personal allowance £228 per week
£988 per month
£11,850 per year
Scottish starter tax rate 19% on annual earnings above the PAYE tax threshold and up to £2,000
Scottish basic tax rate 20% on annual earnings from £2,001 to £12,150
Scottish intermediate tax rate 21% on annual earnings from £12,151 to £31,580
Scottish higher tax rate 41% on annual earnings from £31,581 to £150,000
Scottish top tax rate 46% on annual earnings above £150,000

Emergency tax codes

The emergency tax codes from 6 April 2018 are:

  • 1185L W1
  • 1185L M1
  • 1185L X

NLW & NMW Rates from 1st April 2018

 Hourly rate
Aged 25 and above (national living wage rate) £7.83
Aged 21 to 24 inclusive £7.38
Aged 18 to 20 inclusive £5.90
Aged under 18 (but above compulsory school leaving age) £4.20
Apprentices aged under 19 £3.70
Apprentices aged 19 and over, but in the first year of their apprenticeship £3.70

STATUTORY PAYMENTS

Statutory Sick Pay (SSP)

The same weekly SSP rate applies to all employees. However, the amount you must actually pay an employee for each day they’re off work due to illness (the daily rate) depends on the number of ‘qualifying days’ (QDs) they work each week.

Unrounded daily ratesNumber of QDs in week1 day to pay2 days to pay3 days to pay4 days to pay5 days to pay6 days to pay7 days to pay
£13.1500 7 £13.15 £26.30 £39.45 £52.60 £65.75 £78.90 £92.05
£15.3416 6 £15.35 £30.69 £46.03 £61.37 £76.71 £92.05  
£18.4100 5 £18.41 £36.82 £55.23 £73.64 £92.05    
£23.0125 4 £23.02 £46.03 £69.04 £92.05      
£30.6833 3 £30.69 £61.37 £92.05        
£46.0250 2 £46.03 £92.05          
£92.0500 1 £92.05            

Statutory Maternity, Paternity, Adoption and Shared Parental Pay

Type of payment or recovery2018 to 2019 rate
SMP- weekly rate for first 6 weeks 90% of the employee’s average weekly earnings
SMP - weekly rate for remaining weeks £145.18 or 90% of the employee’s average weekly earnings, whichever is lower
Statutory Paternity Pay (SPP) - weekly rate £145.18 or 90% of the employee’s average weekly earnings, whichever is lower
Statutory Adoption Pay (SAP) - weekly rate for first 6 weeks 90% of employee’s average weekly earnings
SAP - weekly rate for remaining weeks £145.18 or 90% of the employee’s average weekly earnings, whichever is lower
Statutory Shared Parental Pay (ShPP) - weekly rate £145.18 or 90% of the employee’s average weekly earnings, whichever is lower
SMP/SPP/ShPP/SAP - proportion of your payments you can recover from HMRC 92% if your total Class 1 National Insurance (both employee and employer contributions) is above £45,000 for the previous tax year
103% if your total Class 1 National Insurance for the previous tax year is £45,000 or lower

NEWS For Tax Year 2019/2020

Proposed National Living Wage/National Minimum Wage Tax Year 19/20

The Low Pay Commission (LPC) has recommended, and the Government has accepted, that the hourly rates should increase in April 2019 as follows:

  • from £7.83 to £8.21 for workers aged 25 and over (the National Living Wage)
  • from £7.38 to £7.70 for 21-24 year olds
  • from £5.90 to £6.15 for 18-20 year olds
  • from £4.20 to £4.35 for 16-17 year olds
  • from £3.70 to £3.90 for apprentices aged under 19 or in the first year of their apprenticeship

Personal allowance and income tax threshold

The personal allowance for 2019/20 is set at £12,500 (£11,850 in 2018/19), and the basic rate limit will be increased to £37,500 (£34,500 in 2018-19). As a result, the higher rate threshold will be £50,000 in 2019/20. The additional rate threshold will remain at £150,000 in 2019/20. From 2021/22 onwards, the Personal Allowance and basic rate limit will be indexed with the Consumer Price Index (CPI). Changes to the basic rate limit, and higher rate threshold, will apply to non-savings, non-dividend income in England, Wales and Northern Ireland, and to savings and dividend income in the UK.

The marriage allowance will rise from £1,190 in 2018/19 to £1,250 in 2019/20.

Blind person's allowance will rise from £2,390 in 2018/19 to £2,450 in 2019/20.