Rates and Thresholds

Published on Friday 13 April 2018

Between 6 April 2018 and 5 April 2019

Personal Allowance

The standard Personal Allowance is £11,850 per year, £987 per month, £227 per week.

Increased Personal Allowances can apply to people born before 6 April 1938 or registered with their local council as blind or severely sight impaired.

Personal Allowances reduce by £1 for every £2 of net income above £100,000.

PAYE Tax Rate

PAYE Tax RateAnnual Income Threshold
20% Basic Rate£0 to £34,500
40% Higher Rate£34,501 to £150,000
45% Additional RateOver £150,000

Class 1 National Insurance Thresholds

 Per WeekPer MonthPer Year
LEL Lower Earnings Limit£116£503£6,032
PT Primary Threshold£162£702£8,424
ST Secondary Threshold£162£702£8,424
UST Upper Secondary Threshold for under 21's£892£3,863£46.350
AUST Apprentices Upper Secondary Threshold£892£3,863£46,350
UEL Upper Earnings Limit£892£3,863£46,350

Class 1 National Insurance Rates

Employee Category ABetween Primary Threshold and Upper Earnings LimitPT to UEL12%
Above Upper Earnings LimitUEL2%
Employer Category AAbove Secondary ThresholdST13.8%

From 6th April 2015, employers with employees over 16 but under 21 years old no longer have to pay Employer Class 1 NICs on earnings up to the Upper Secondary Threshold (UST).

From 6th April 2016, employers with apprentices under 25 years old may no longer have to pay Employer Class 1 NICs on earnings up to the Apprentice Upper Secondary Threshold (AUST).

Employer Allowance

Most employers can reduce the amount of National Insurance Contributions (NICs) they pay for their employees by up to £3000 per annum.  This is claimed from HMRC via payroll.

Student Loans

Per WeekPer MonthPer Year
Employee earning threshold
Plan 1
£352£1,527£18,330
Employee earning threshold
Plan 2
£480£2,083£25,000
9% deduction on amounts above the earnings threshold for both Plan 1 and Plan 2

Mileage Allowance Payments (MAPs)

Payable to employees who use their own vehicle for business journeys. Payments up to these rates are free from Tax and NICs and do not need to be reported to HMRC.

Type of VehicleRate Per Business Mile
Car45p up to 10,000 / 25p over 10,000
Motorcycles24p
Cycles20p

For more detailed guidance in respect of PAYE and National Insurance Rates and Thresholds and Car Allowances, please refer to www.gov.uk.