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The new Government Rates for the Tax Year 2018-19.

Tax bracketsGross per weekDescription
Lower Earnings Limit £116 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 £116-£162 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 £162 gross per week or more If you pay your employee £162 or more you must register and pay Employer’s NI.
Employee's (Primary) NI Threshold £162 gross per week or more If you pay your employee £162 or more you must now deduct National Insurance on behalf of your employee, as well as pay Employer’s NI.
Tax Threshold Over £228 gross per week If you pay your employee £228 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 £4.20
Age 18-20 £5.90
Age 21-24 £7.38
Age 25+ £7.83 
Offset Allowance £49  per 7-day week

 

Pension Contribution

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

DatesEmployerNannyGovernmentTotal
6th April 2018 - 5th April 2019 2% 2.4% 0.6% 5%

 

Redundancy Pay Entitlement

 

AgeDescription
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 42-retirement One and half week's pay or £733.50, whichever is lower
Nannytax clients are advised to call our payroll team for further assistance on accurately calculating Redundancy Pay.

 

Statutory Maternity Pay (SMP)

 

AmountWhen?
90% of average gross weekly earnings First six weeks on SMP
£145.18 gross per week, or 90% of average weekly earnings, whichever is lower Remaining weeks up to a maximum of 33 weeks

 

Statutory Sick Pay (SSP)

 

AmountWhen?
£0 First 3 consecutive days of illness
£92.05 gross per week The fourth consecutive day of illness, up to 28 weeks

 

 Student Loan Recovery

 

PlanDescription
£352 gross per week (Plan 1) If your employee has a student loan and they are earning £18,330 gross per year (£1,527 gross per month, £352 gross per week) or more, student loan repayments must be deducted from their salary.
£480 gross per week (Plan 2) If your employee has a student loan and they are earning £25,000 gross per year (£2,083 gross per month, £480 gross per week) or more, student loan repayments must be deducted from their salary.
9% Student loan deductions

 

 

The Nannytax Payroll Service

Have a look at our all-inclusive Payroll Service to see how we can help you with the admin involved with hiring a nanny.

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Paying Tax and NI

Find out how Tax and National Insurance is paid when hiring a nanny, including employer and employee responsibilities.

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Salary Calculator

Work out the net and gross salary, and your total cost of employing a nanny using our helpful salary calculator.

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