UK Payroll Facts 2016-17

UK Payroll Facts

Standard tax code is 1100L. This means £11,000 annual earnings allowance.

Tax Bands and Rates

2016-17BandwidthsTax Rate
Taxable earnings£0 - £32,00020%
Taxable earnings£32,001 - £150,00040%
Taxable earnings£100,000 - £150,00040% reducing personal allowances
Taxable earnings over£150,00045% no allowances

Statutory Payments

Statutory Sick Pay up to 28 Weeks (no reimbursement)£88.45 per week
Statutory Maternity / Adoption Pay paid for 39 weeks£139.58 gross per week
Statutory Paternity Pay 1 or 2 consecutive weeks£139.58 gross per week
Small Employer ThresholdLess than £45,000 of previous year's NICrecover 100% plus 3% compensation
Large EmployerOnly on SMP / SPP / SAP92% recovery
Redundancy Pay£479 per weekor your contracted weekly pay if lower

National Minimum Wage

Rate Per HourOctober 2015October 2016
Age 16-17£3.87£4.00
Age 18-20£5.30£5.55
Age 21-25£6.70£6.95

National Insurance Earnings

Per WeekPer MonthPer AnnumEmployeesEmployers
Lower Earnings Limit (LEL)£112£486£5,824NilNil
Primary Threshold (PT)£155£672£8,06012%13.8%
Secondary Threshold (ST)£156£676£8,11212%13.8%
Upper Accrual Point (UAP)£827£3,583£43.00012%13.8%
Above Upper Earnings Limit (EUL)

Less upto £3,000 Annual Employment Allowance.

Other Rates

Statutory Redundancy maximum 20 weeks06/04/2014 - £479 per week
Student Loan earningsThe annual threshold for Plan 1 is £17,495
The annual threshold for Plan 2 is £21,000
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) 50%

Employee Vehicle Mileage Payments for Business Travel

Motor Cars and VansFirst 10,000 business miles*45p per mile
Motor Cars and VansOver 10,000 business miles25p per mile
Motorcycles24p per mile
Cycles20p per mile

*For National Insurance purposes, the higher rate applies to all miles, not only the first £10,000