Standard tax code is 1250L. This means £12,500 annual earnings allowance.
Tax Bands & Rates
2020-21
Bandwidths
Tax Rate
Taxable earnings
0-£37,500
20%
Taxable earnings
£37,501 – £100,000
40%
Taxable earnings
£100,000 – £150,000
40% reducing personal allowances
Taxable earnings over
£150,000
45% no allowances
Statutory Payments
Statutory Sick Pay up to 28 Weeks (no reimbursement)
£95.85 per week, £19.17 per day (5 day week)
Statutory Maternity/Adoption Pay paid for 39 Weeks
First 6 weeks 90% of average weekly earnings
then 33 weeks at £151.20 or average weekly earnings if less
Statutory Paternity Pay 1 or 2 consecutive weeks
£151.20 or average weekly earnings if less
Small Employer Threshold
Less than £45,000 of previous year’s NIC
Recover 100% plus 3% compensation
Large Employer
Only on SMP/SPP/SAP
92% recovery
National Minimum Wage
Rate Per Hour
April-2019
April-2020
age 16-17
£4.35
£4.55
age 18-20
£6.15
£6.45
age 21 to 24
£7.70
£8.20
Apprentice
3.90
4.15
National Living Wage
Rate Per Hour
£8.21
£8.72
National Insurance Earnings
Per Week
Per Month
Per Annum
Employees
Employers
Lower Earnings Limit (LEL)
£120
£520
£6,240
Nil
Nil
Primary Threshold (PT)
£183
£792
£9,500
12%
13.8%
Secondary Threshold (ST)
£169
£732
£8,788
0%
13.8%
Upper Secondary Threshold (UST)
£962
£4,167
£50,000
12%
13.8%
Above Upper Earnings Limit (UEL)
£962
£4,167
£50,000
2%
13.8%
Less up to £4000 Annual Employment Allowance (if total NIC for 2019-20 under £100,000)
Other rates
Statutory Redundancy maximum 20 weeks
£525 per week
Student Loans:
Plan 1 earnings above £19,390
Plan 1 earnings above £19,390
9% deduction
Plan 2 earnings above £26,575
New postgraduate loan(PGL) earnings above £21,000
6% deduction
Childcare Vouchers (Salary Sacrifice)
Maximum £243 per month (£55 per week) 20%
Maximum £124 per month (£28 per week) 40%
Maximum £97 per month (£22 per week) 45%
Maximum £124 per month (£28 per week) 40%
Maximum £97 per month (£22 per week) 45%
Employee Vehicle Mileage Payments for business travel
Motor Cars and Vans
First 10,000 business miles*
45p per mile
Over 10,000 business miles
25p per mile
Motorcycles
24p per mile
Cycles
20p per mile
* For National Insurance purposes, the higher rate applies to all miles, not only the first 10,000.