Tax & National Insurance

By April 6, 2015FAQ

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.