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UK Payroll Facts 2023/24

Standard tax code is 1257L. This means £12,570 annual earnings allowance. No change from last tax year.

Tax Bands & Rates

2023-24
Bandwidths
Tax Rate
Taxable earnings
0-£37,700
20%
Taxable earnings
£37,701 – £125,140
40%
Taxable earnings over
£125,141
45%

Statutory Payments

Statutory Sick Pay up to 28 Weeks (no reimbursement)
£109.40 per week, £21.88 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 £172.48 or average weekly earnings if less
Statutory Paternity Pay 1 or 2 consecutive weeks
£172.48 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-2022
April-2023
age 16-17
£4.81
£5.28
age 18-20
£6.83
£7.49
age 21 to 22
£9.18
£10.18
age 23 and above
£9.50
£10.42
Apprentice
£4.81
£5.28

National Insurance Earnings

Per Week
Per Month
Per Annum
Employees
Employers
Lower Earnings Limit (LEL)
£123
£533
£6,396
Nil
Nil
Primary Threshold (PT)
£242
£1048
£12,570
10%
13.80%
Secondary Threshold (ST)
£175
£758
£9,100
0%
13.80%
Upper Secondary Threshold (UST)
£967
£4,189
£50,270
10%
13.80%
Above Upper Earnings Limit (UEL)
£967
£4,189
£50,270
2%
13.80%

Less up to £5000 Annual Employment Allowance (if total NIC for 2022-23 under £100,000)

Other rates

Statutory Redundancy maximum 20 weeks
£643 per week
Student Loans:
Plan 1 earnings above £22,015
9% deduction
Plan 2 earnings above £27,295
9% deduction
Plan 4 earnings above £25,375
9% deduction
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%

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.