Tax Rates and Thresholds for 2018-19
The new Government Rates for the Tax Year 2018-19.
|Tax brackets||Gross per week||Description|
|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 Deadlines||Financial Quarter||Months 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.
|Age||Gross per hour|
|Offset Allowance||£49 per 7-day week|
Below is a table that illustrates the minimum percentage of the employee's pay that an employer, a nanny and the government will have to contribute this financial year.
|6th April 2018 - 5th April 2019||2%||2.4%||0.6%||5%|
Redundancy Pay Entitlement
Redundancy pay is capped at £508 per week, even if you earn more. You receive redundancy pay for a minimum of two years work and a maximum of 20 years.
|Age 18-22||Half a week's pay|
|Age 22-42||One week's pay|
|Age 42-retirement||One and a half week's pay|
|Nannytax clients are advised to call our payroll team for further assistance on accurately calculating Redundancy Pay.|
Statutory Maternity Pay (SMP)
|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)
|£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
|£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|