Government Rates & Thresholds
Current Tax and National Insurance Thresholds
|Lower Earnings Limit||Under £113 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 £113-£157 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||£157 gross per week or more||If you pay your employee £156 or more you must register and pay Employer’s NI.|
|Employee's (Primary) NI Threshold||£157 gross per week or more||If you pay your employee £155 or more you must now deduct National Insurance on behalf of your employee, as well as pay Employer’s NI.|
|Tax Threshold||Over £221 gross per week||If you pay your employee £212 or more you must now also deduct tax on from your employee.|
Tax and NI Payments
If your Tax and NI bill is below £1500 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)
From October 2016
|Under 18||£4.05 per hour gross|
|Age 18-20||£5.60 per hour gross|
|Age 21-24||£7.05 per hour gross|
|Age 25+||£7.50 per hour gross|
|Offset Allowance||£37.45 per 7-day week|
Redundancy Pay Entitlement
|Age 18-21||Half a week's pay or £244.50, whichever is lower|
|Age 22-40||One week's pay or £489, whichever is lower|
|Age 41-retirement||One and half week's pay or £733.50, whichever is lower|
|Quartz Payroll clients are advised to call our offices for further assistance on accurately calculating redundancy pay.|
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 £140.98 gross per week, or 90% of average gross weekly earnings, whichever is lower.
Statutory Sick Pay (SSP)
The current rate is £89.35 per week
NB. Since 6 April 2014 recovery of SSP has been abolished. For a limited period you may be able to recover SSP for previous tax years. Quartz Payroll clients are advised to call our offices if affected by the changes to SSP.
Student Loan Recovery
|£341 gross per week||If your employee has a student loan and they are earning £17,775 gross per year (£1,481 gross per month, £341 gross per week) or more, student loan repayments must be deducted from their salary.|
NB. These rates were last updated on 11th April 2017.