UK Payroll Facts 2017-18

UK Payroll Facts

Standard tax code is 1150L. This means £11,500 annual earnings allowance.

Tax Bands and Rates

2017-18BandwidthsTax Rate
Taxable earnings£0 - £33,50020%
Taxable earnings£33,501 - £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)£89.35 per week
Statutory Maternity / Adoption Pay paid for 39 weeks£140.98 gross per week
Statutory Paternity Pay 1 or 2 consecutive weeks£140.98 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£489 per weekor your contracted weekly pay if lower as from 06/04/17

National Minimum Wage

Rate Per HourOctober 2016April 2017
Age 16-17£4.00£4.05
Age 18-20£5.55£5.60
Age 21-25£6.95£7.05
25 and Over (National Living Wage)£7.20£7.50

National Insurance Earnings

Per WeekPer MonthPer AnnumEmployeesEmployers
Lower Earnings Limit (LEL)£113£490£5,876NilNil
Primary Threshold (PT)£157£680£8,16412%13.8%
Secondary Threshold (ST)£157£680£8,16412%13.8%
Upper Accrual Point (UAP)£866£3,750£45.00012%13.8%
Above Upper Earnings Limit (EUL)

Less upto £3,000 Annual Employment Allowance.

Student Loan Recovery

Rate or Threshold2017 to 2018 rate
Employee earnings threshold for Plan 1£17,775 per year
£1,481 per month
£341 per week
Employee earnings threshold for Plan 2£21,000 per year
£1,750 per month
£403 per week
Student loan deductions9%

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

Other Rates

Statutory Redundancy maximum 20 weeks06/04/2017 - £479 per week
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%