UK Payroll Facts 2023-24

UK Payroll Facts

Standard tax code is 1257L. This means £12,570 annual earnings allowance. No change from 2022-23 tax year.

Tax Bands and Rates

2023-24BandwidthsTax Rate
Taxable earnings£0 - £37,70020%
Taxable earnings£37,701 - £125,14040%
Taxable earnings over£125,14145% no allowances

Statutory Payments

Statutory Sick Pay up to 28 Weeks (no reimbursement)£109.40 per week, £21.88 per day (5 day week)
Statutory Maternity / Adoption Pay paid for 39 weeks. First 6 weeks @ 90% of average weekly earnings.£172.48 gross per week for 33 weeks or average weekly earnings if less
Statutory Paternity Pay 1 or 2 consecutive weeks£172.48 gross per week or average weekly earnings if less
Small Employer ThresholdLess than £45,000 of previous year's NIC (both employee and employer)recover 100% plus 3% compensation
Large EmployerOnly on SMP / SPP / ShPP / SAP or SPBP92% recovery
Statutory Redundancy Pay maximum 20 weeks£643.00 per weekor your contracted weekly pay if lower as from 06/04/17

National Minimum Wage

Rate Per HourApril 2022April 2023
Age 16-17£4.81£5.28
Age 18-20£6.83£7.49
Age 21-22£9.18£10.18
23 and Over (National Living Wage)£9.50£10.42

National Insurance Earnings

Per WeekPer MonthPer AnnumEmployeesEmployers
Lower Earnings Limit (LEL)£123£533£6,396NilNil
Primary Threshold (PT)£242£1048£12,57010.0%13.8%
Secondary Threshold (ST)£175£758£9,1000%13.8%
Upper Secondary Threshold (UST) (under 21)
Apprentice Upper Secondary Threshold (apprentice under 25)
Above Upper Earnings Limit (EUL)

Less upto £5,000 Annual Employment Allowance (if total NIC for 2021-22 was under £100,000)

Single Director-only payrolls, where the Director is the only employee, are no longer eligible.

Student Loan Recovery

Rate or Threshold2023 to 2024 rate
Employee earnings threshold for Plan 1 earnings above£22,015 per year
Employee earnings threshold for Plan 2 earnings above£27,295 per year
Employee earnings threshold for Plan 4 earnings above£27,660 per year
Student loan deductions9%
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

Apprenticeship Levy

Allowance or Charge2023 to 2024 Rate
Apprenticeship Levy allowance£15,000
Apprenticeship Levy charge0.5%

Employers and connected companies with a total annual pay bill of more than £3 million, are liable to the Apprenticeship Levy, which is payable monthly. Employers who are not connected to another company or charity will have an annual allowance that reduces the amount of Apprenticeship Levy you have to pay. Apprenticeship Levy is charged at a percentage of your annual pay bill.

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%