National Insurance & Tax Information

National Minimum Wage
From April 2017
£7.50 National Living Wage for workers aged 25 and over
£7.05 for workers 21 to 24 years of age
£5.60 for 18 – 20 year olds
£4.05 for 16 – 17 year olds
£3.50 Apprentice Rate
Statutory Payments

For the 2017 / 18 Tax Year

Statutory Sick Pay (SSP)  
Minimum weekly earnings to qualify £113.00
Weekly rate of SSP £89.35
Statutory Maternity Pay (SMP)
Minimum weekly earnings £113.00
Higher weekly rate for first 6 weeks 90 % of average weekly earnings (in the qualifying period)
Lower weekly rate for 33 weeks is the lesser of £140.98 or 90% of average weekly earnings

SMP is now paid for up to 39 weeks within this period an employee may have 10 keep in touch days (KIT) which will not effect the payment of SMP

Ordinary Statutory Paternity Pay (OSPP)
Minimum weekly earnings £113.00
Weekly rate for up to 2 weeks is the lesser of £140.98 or 90% of average weekly earnings
Statutory Adoption Pay (SAP)
Minimum weekly earnings £113.00
Weekly rate for up to 39 weeks Is now in line with SMP

All employers are entitled to recover 92% of the SMP/OSPP/SAP/ShPP they pay.

If you qualify for Small Employers Relief (annual liability for National Insurance less than £45,000) you are entitled to recover 103% of the SMP/OSPP/SAP/ShPP you pay.

Statutory Redundancy Pay

The statutory redundancy rate is £489.00 maximum per week

See here for further details and up to date information

Student Loans

From April 2017

Plan 1 Student Loans (taken before 1st September 2012)
Student Loan Repayments are 9% of earnings above: £17,775 per annum
£1481 per month
£341 per week
Plan 2 Student Loans (taken after 1st September 2012)
Student Loan Repayments are 9% of earnings above: £21,000 per annum
£1750 per month
£403 per week
Income Tax
Allowances 2017 / 18 tax year
Personal Allowance £11 500 per year
Tax Rates Taxable Income
20% Up to £33 500  Basic Rate
20% Up to £31 500 Scottish Basic Rate
40% over £33 501 up to £150,000 Higher Rate
40%  over £31 501 to £150 000 Scottish Higher Rate
45% over £150,001  Additional
National Insurance

National Insurance for 2017 / 2018

Employees
Lower Earnings Limit Primary Threshold
(12% contributions)
Upper Earnings Limit
(2% contributions)
Weekly £113 £157 £866
Monthly £490 £680 £3750
Yearly £5876 £8164 £45000
NI Category A Most Employees
NI Category C Employees over the state pension age, no employee contributions
NI Category H Apprentice under the age of 25
NI Category M Employees under 21 not in a contracted out pension scheme
NI Category X Employees don’t have to pay National Insurance

These are the commonly used categories, for more information visit the HMRC website

Employers
Lower Earnings Limit Secondary Threshold
(13.8%)
Upper Secondary Threshold,
Apprentice Upper Secondary Threshold
Upper Earnings Limit
(13.8%)
Weekly £113 £157 £866 £866
Monthly £490 £680 £3750 £3750
Yearly £5876 £8164 £45000 £45000
NI Category A Employers contribute 13.8% above the Secondary Threshold
NI Category C Employers contribute 13.8% above the Secondary Threshold
NI Category M No Employer contributions until the Upper Secondary Threshold
Ni Category H No Employer contributions until the Apprentice Upper Secondary Threshold
NI Category X No Contributions

The bands and rates are for the most commonly used categories, please visit the HMRC website for full details

 

Payroll Options have put this very simple guide together to give an indication of bands and contribution rates.  This should not be relied upon for calculations and for further guidance please contact us.