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The new Government Rates for the Tax Year 2019-20.

Tax bracketsGross per weekDescription
Lower Earnings Limit £118 gross per week or less If you pay your employee the LEL or below, there is nothing due to HMRC and your employee will not be entitled to any state pensions or benefits.
Bracket between Lower Earnings Limit and NI Threshold Between £118-£166 gross per week If you pay your employee between these figures there is nothing due to HMRC, however you should still register so your employee will be entitled to state pension and benefits.
Employer's (Secondary) NI Threshold £166 gross per week or more If you pay your employee £166 or more you must register and pay Employer’s NI.
Employee's (Primary) NI Threshold £166 gross per week or more If you pay your employee £166 or more you must now deduct National Insurance on behalf of your employee, as well as pay Employer’s NI.
Tax Threshold Over £240 gross per week If you pay your employee £240 or more you must now also deduct tax on from your employee.

 

Tax and NI Payments

If your Tax and NI bill is below £1,500 per month you only have to pay the Tax and NI to HMRC on a quarterly basis. Be aware that late payments can result in hefty fines and interest being applied.

If your monthly liability bill exceeds £1,500 per month, you must pay HMRC every month.

Payment DeadlinesFinancial QuarterMonths Covered
19th Jan 4 Oct, Nov, Dec
19th April 1 Jan, Feb, Mar
19th July 2 April, May, Jun
19th Oct 3 Jul, Aug, Sep

 

National Minimum Wage (NMW)

*The National Minimum Wage (under 24) changes every October, the National Living Wage (25+) changes every April.

AgeGross per hour
Under 18 £4.35
Age 18-20 £6.15
Age 21-24 £7.70
Age 25+ £8.21
Offset Allowance £52.85 per 7-day week

 

Redundancy Pay Entitlement

AgeGross per hour
Age 18-21 Half a week's pay or £244.50, whichever is lower
Age 22-40 One week's pay or £489, whichever is lower
Age 41-retirement One and a half week's pay or £733.50, whichever is lower

 

Statutory Maternity Pay (SMP)

 
The first 6 weeks of SMP are paid at 90% of average gross weekly earnings. The remaining weeks of the maternity pay period (up to a maximum of 33 weeks) are paid at the rate of £148.68 gross per week, or 90% of average gross weekly earnings, whichever is lower.

 

Statutory Sick Pay (SSP)

   
£94.25 gross per week The first 3 consecutive days of illness are unpaid. SSP starts on the fourth consecutive day of illness, up to 28 weeks.

 

Student Loan Recovery

   
£364.13 gross per week If your employee has a student loan and they are earning £18,935 gross per year (£1,577.91 gross per month, £364.13 gross per week) or more, student loan repayments must be deducted from their salary.

 

Pension Contribution

Below is a table that illustrates the minimum percentage of the employee's pay that an employer, an employee and the government will have to contribute this financial year.

DatesEmployerEmployeeGovernmentTotal
6th April 2019 - 5th April 2020 3% 4% 1% 8%

 

Automatic enrolment earnings threshold

Pay reference period       
2019-2020 Annual 1 week Fortnight 4 weeks 1 month 1 quarter Bi-annual
Lower level of qualifying earnings £6,136 £118 £236 £472 £512 £1,534 £3,068
Earnings trigger for automatic enrolment £10,000 £192 £384 £768 £833 £2,499 £4,998
Upper level of qualifying earnings £50,000 £962 £1,924 £3,847 £4,167 £12,500 £25,000

Using our default service, we calculate the pension contribution on the earnings between the lower and upper earnings limit. This is referred to as qualifying earnings. The pension contribution is 4% employee and 3% employer of the qualifying earnings, with 1% tax relief added directly in to the pension scheme by the government.

Example:

Gross monthly pay: £1,000

Deduct the lower earnings limit: £1,000 - £512 = £488

4% of £488 = £19.52 Employee Contributions

3% of £488 = £14.64 Employer Contributions

1% of £488 = £4.88 Tax relief

Gross weekly pay: £250

Deduct the lower earnings limit = £250 - £118 = £132

4% of £132 = £5.28 Employee Contributions

3% of £132 = £3.96 Employer Contributions

1% of £132 = £1.32 Tax Relief