Tax & National Insurance for the 2015/16 Tax Year
We have picked out some of the headline Tax and National Insurance rates for the year ending April 2016:
PAYE Tax
| Allowances | April 2015 – March 2016 |
| Personal Allowance | £10,600 |
| Tax Rates | Taxable Income | |
| 20% | Up to £31,785 | Basic Rate |
| 40% | over £31,785 up to £150,000 | Higher Rate |
| 45% | over £150,001 | Additional |
National Insurance
Employees
| Lower Earnings Limit | Primary Threshold (12% contributions) |
Upper Earnings Limit (2% contributions) |
|
| Weekly | £112 | £155 | £815 |
| Monthly | £486 | £672 | £3532 |
| Yearly | £5824 | £8060 | £42385 |
| NI Category A | Most employees not in a contracted out pension scheme |
| NI Category C | Employees over the state pension age |
| 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
Employer
| Lower Earnings Limit | Secondary Threshold (13.8%) |
Upper Secondary Threshold* | Upper Earnings Limit (13.8%) |
|
| Weekly | £112 | £156 | £815 | £815 |
| Monthly | £486 | £676 | £3532 | £3532 |
| Yearly | £5824 | £8112 | £42385 | £42385 |
*Point where 13.8% contributions commence for NI category M
| 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 X | No Contributions |
If you want manual tax calculation tables please see here, and for manual National Insurance calculations see here
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.
