Rates and Thresholds
Between 6 April 2019 and 5 April 2020
Personal Allowance
The standard Personal Allowance is £12,500 per year, £1041 per month, £240 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 Rate | Annual Income Threshold |
|---|---|
| 20% Basic Rate | Up to £37,500 |
| 40% Higher Rate | £37,501 to £150,000 |
| 45% Additional Rate | Over £150,000 |
Class 1 National Insurance Thresholds
| Per Week | Per Month | |
|---|---|---|
| LEL Lower Earnings Limit | £118 | £512 |
| PT Primary Threshold | £166 | £719 |
| ST Secondary Threshold | £166 | £719 |
| UST Upper Secondary Threshold for under 21's | £962 | £4,167 |
| AUST Apprentices Upper Secondary Threshold | £962 | £4,167 |
| UEL Upper Earnings Limit | £962 | £4,167 |
Class 1 National Insurance Rates
| Employee Category A | Between Primary Threshold and Upper Earnings Limit | PT to UEL | 12% |
| Above Upper Earnings Limit | UEL | 2% | |
| Employer Category A | Above Secondary Threshold | ST | 13.8% |
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 Week | Per Month | Per Year | |
| Employee earning threshold Plan 1 | £364 | £1,577 | £18,924 |
| Employee earning threshold Plan 2 | £494 | £2,143 | £25,716 |
| Employee earning threshold Postgraduate Loan | £404 | £1,750 | £21,000 |
6% deduction on amounts above the earnings threshold for Postgraduate Loans
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 Vehicle | Rate Per Business Mile |
|---|---|
| Car | 45p up to 10,000 / 25p over 10,000 |
| Motorcycles | 24p |
| Cycles | 20p |
For more detailed guidance in respect of PAYE and National Insurance Rates and Thresholds and Car Allowances, please refer to www.gov.uk.