UK Payroll Facts 2021-22
Standard tax code is 1257L. This means £12,570 annual earnings allowance. No change from 2021-22 tax year.
Tax Bands and Rates
| 2022-23 | Bandwidths | Tax Rate |
|---|---|---|
| Taxable earnings | £0 - £37,700 | 20% |
| Taxable earnings | £37,701 - £150,000 | 40% |
| Taxable earnings over | £150,000 | 45% no allowances |
Statutory Payments
| Description | ||
|---|---|---|
| Statutory Sick Pay up to 28 Weeks (no reimbursement) | £96.35 per week, £19.27 per day (5 day week) | |
| Statutory Maternity / Adoption Pay paid for 39 weeks. First 6 weeks @ 90% of average weekly earnings. | £151.97 gross per week for 33 weeks or average weekly earnings if less | |
| Statutory Paternity Pay 1 or 2 consecutive weeks | £151.97 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 | £571 per week | or your contracted weekly pay if lower as from 06/04/17 |
National Minimum Wage
| Rate Per Hour | April 2020 | April 2021 |
|---|---|---|
| Apprentice | £4.15 | £4.30 |
| Age 16-17 | £4.55 | £4.62 |
| Age 18-20 | £6.45 | £6.56 |
| Age 21-24 | £8.20 | £8.36 |
| 25 and Over (National Living Wage) | £8.72 | £8.91 |
National Insurance Earnings
| Per Week | Per Month | Per Annum | Employees | Employers | |
|---|---|---|---|---|---|
| Lower Earnings Limit (LEL) | £120 | £520 | £6,240 | Nil | Nil |
| Primary Threshold (PT) | £184 | £797 | £9,568 | 12% | 13.8% |
| Secondary Threshold (ST) | £170 | £737 | £8,840 | 0% | 13.8% |
| Upper Secondary Threshold (UST) | £967 | £4,189 | £50,270 | 2% | 13.8% |
| Above Upper Earnings Limit (EUL) | £967 | £4,189 | £50,270 | 2% | 13.8% |
Less upto £4,000 Annual Employment Allowance (if total NIC for 2021-22 was under £100,000)
Student Loan Recovery
| Rate or Threshold | 2021 to 2022 rate |
|---|---|
| Employee earnings threshold for Plan 1 earnings above | £19,895 per year |
| Employee earnings threshold for Plan 2 earnings above | £27,295 per year |
| Employee earnings threshold for Plan 4 earnings above | £25,000 per year |
| Student loan deductions | 9% |
| 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% |