Government Rates & Thresholds
Current Tax and National Insurance Thresholds
|Lower Earnings Limit||Under £120 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||Between £120 -£170 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||£170 gross per week or more||If you pay your employee £170 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||£184 gross per week or more||If you pay your employee £184 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 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.
|19 January||19 April||19 July||19 October|
|If your monthly liability bill exceeds £1500 per month you must pay HMRC every month.|
National Minimum Wage (NMW)
The National Minimum Wage (22) changes every October, the National Living Wage (23+) changes every April.
|Under 18||£4.62 per hour gross|
|Age 18-20||£6.56 per hour gross|
|Age 21-22||£8.36 per hour gross|
|Age 25+||£8.91 per hour gross|
|Offset Allowance||£57.40 per 7-day week|
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 rate of £151.97 gross per week, or 90% of average gross weekly earnings, whichever is lower.
Statutory Sick Pay (SSP)
The current SSP rate is £96.35 per week.
NB. These rates were last updated on 24/03/2021.