Government Rates & Thresholds 23-24
The current Government rates for the tax year 2023 – 2024 come into effect as of the 6th of April 2023. Please see the tables below for the latest Tax and National Insurance Rates & Thresholds 23 -24.
|Tax brackets||Gross per week||Description|
|Lower Earnings Limit||£123 gross per week or less||If you pay your employee the LEL or below, there is nothing due to HMRC in respect of NI. This means the employee will not be contributing towards their NI record which can affect their eligibility to a state pension or benefits.|
|Bracket between Lower Earnings Limit and NI Threshold||£123 – £175 gross per week||If you pay your employee between these figures there is nothing due to HMRC in respect of NI.|
|Employer’s (Secondary) NI Threshold||£175 gross per week or more||If you pay your employee £175 or more and they are on a standard NI code, there will not be an Employee NI deduction, but Employer NI will be due|
|Employee’s (Primary) NI Threshold||£242 gross per week or more||If you pay your employee £242 or more you must now deduct National Insurance on behalf of your employee, as well as pay Employer’s NI.|
|Tax Threshold||Over £242 gross per week||Based on the standard tax free allowance for this year of £12,570, if you pay your employee £242 or more you must now also deduct tax from your employee.|
Tax and NI Payments
If your Tax and NI bill is below £1,500 per month you will 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 July||1||Apr, May, Jun|
|19th October||2||Jul, Aug, Sep|
|19th January||3||Oct, Nov, Dec|
Jan, Feb, Mar
National Minimum Wage (NMW)
The National Minimum Wage (22) changes every October, the National Living Wage (23+) changes every April.
|Age||Gross per hour|
|Under 18 (but above compulsory school leaving age)||£5.28|
|Age 18 – 20 inclusive||£7.49|
|Age 21 – 22 inclusive||£10.18|
|Age 23 and above (National Living Wage)||£10.42|
|6th April 2023 – 5th April 2024||3%||4%||1%||
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 current SMP rate of £172.48 gross per week, or 90% of the employee’s weekly earnings, whichever is lower.
Statutory Sick Pay (SSP)
The 2023-24 rate of SSP is £109.40 gross per week. The first 3 consecutive days of illness are unpaid as SSP starts on the fourth consecutive day of illness and can be paid for up to 28 weeks.
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