UK Payroll Facts 2020-21
Standard tax code is 1250L. This means £12,500 annual earnings allowance.
Tax Bands and Rates
| 2020-21 | Bandwidths | Tax Rate |
|---|---|---|
| Taxable earnings | £0 - £37,500 | 20% |
| Taxable earnings | £37,501 - £100,000 | 40% |
| Taxable earnings | £100,000 - £150,000 | 40% reducing personal allowances |
| Taxable earnings over | £150,000 | 45% no allowances |
Statutory Payments
| Description | ||
|---|---|---|
| Statutory Sick Pay up to 28 Weeks (no reimbursement) | £95.85 per week, £19.17 per day (5 day week) | |
| Statutory Maternity / Adoption Pay paid for 39 weeks. First 6 weeks @ 90% of average weekly earnings. | £151.20 gross per week for 33 weeks or average weekly earnings if less | |
| Statutory Paternity Pay 1 or 2 consecutive weeks | £151.20 gross per week 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 |
| Statutory Redundancy Pay maximum 20 weeks | £525 per week | or your contracted weekly pay if lower as from 06/04/17 |
National Minimum Wage
| Rate Per Hour | April 2019 | April 2020 |
|---|---|---|
| Apprentice | £3.90 | £4.15 |
| Age 16-17 | £4.35 | £4.55 |
| Age 18-20 | £6.15 | £6.45 |
| Age 21-24 | £7.70 | £8.20 |
| 25 and Over (National Living Wage) | £8.21 | £8.72 |
National Insurance Earnings
| Per Week | Per Month | Per Annum | Employees | Employers | |
|---|---|---|---|---|---|
| Lower Earnings Limit (LEL) | £120 | £520 | £6,240 | Nil | Nil |
| Primary Threshold (PT) | £183 | £792 | £9,500 | 12% | 13.8% |
| Secondary Threshold (ST) | £169 | £732 | £8,788 | 0% | 13.8% |
| Upper Secondary Threshold (UST) | £962 | £4,167 | £50,000 | 12% | 13.8% |
| Above Upper Earnings Limit (EUL) | £962 | £4,167 | £50,000 | 2% | 13.8% |
Less upto £4,000 Annual Employment Allowance (if total NIC for 2019-20 was under £100,000)
Change in Employment Allowance. From April 2020 Employment Allowance needs to be claimed each tax year and included in the first Employer Payment Summary submission. Large companies and groups will no longer be eligible if the total NICS for 2019-20 are greater than £100,000.
Student Loan Recovery
| Rate or Threshold | 2020 to 2021 rate |
|---|---|
| Employee earnings threshold for Plan 1 | £19,390 per year |
| Employee earnings threshold for Plan 2 | £26,575 per year |
| Student loan deductions | 9% |
| NEW Postgraduate loan (PGL) earnings above £21.000 per year | 6% |
Employee Vehicle Mileage Payments for Business Travel
| Type | Mileage | Rate |
|---|---|---|
| Motor Cars and Vans | First 10,000 business miles* | 45p per mile |
| Motor Cars and Vans | 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
Other Rates
| Description | Rate |
|---|---|
| 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% |