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

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
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)

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 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

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

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%