UK Payroll Facts 2020-21

UK Payroll Facts

Standard tax code is 1250L. This means £12,500 annual earnings allowance.

Tax Bands and Rates

2020-21BandwidthsTax Rate
Taxable earnings£0 - £37,50020%
Taxable earnings£37,501 - £100,00040%
Taxable earnings£100,000 - £150,00040% reducing personal allowances
Taxable earnings over£150,00045% 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 ThresholdLess than £45,000 of previous year's NICrecover 100% plus 3% compensation
Large EmployerOnly on SMP / SPP / SAP92% recovery
Statutory Redundancy Pay maximum 20 weeks£525 per weekor your contracted weekly pay if lower as from 06/04/17

National Minimum Wage

Rate Per HourApril 2019April 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 WeekPer MonthPer AnnumEmployeesEmployers
Lower Earnings Limit (LEL)£120£520£6,240NilNil
Primary Threshold (PT)£183£792£9,50012%13.8%
Secondary Threshold (ST)£169£732£8,7880%13.8%
Upper Secondary Threshold (UST)£962£4,167£50,00012%13.8%
Above Upper Earnings Limit (EUL)£962£4,167£50,0002%13.8%

Less upto £4,000 Annual Employment Allowance (if total NIC for 2019-20 was under £100,000)

Student Loan Recovery

Rate or Threshold2020 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 deductions9%
NEW Postgraduate loan (PGL) earnings above £21.000 per year6%

Employee Vehicle Mileage Payments for Business Travel

TypeMileageRate
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

DescriptionRate
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%