Current tax thresholds
An employer must register and deduct NI from their employee if they are paid £153 or more per week. An employer must also register if their employee has another job, even if they are paid below the threshold.
If an employer pays between £111 and £153 and the employee does not have another job they should still register as an employer although no tax and NI will be due. This will enable the employee to receive state pension and other benefits. Tax is only payable if the employee is paid £192* or more per week and they do not have another job.
Tax and NI payments
If an employer's monthly tax and NI bill is below £1,500 they only have to pay tax and NI to HMRC on a quarterly basis.
19 April 2014
19 July 2014
19 October 2014
19 January 2015
Statutory Sick Pay (SSP)
The current rate is £87.55 per week.
NB. From 6 April 2014 recovery of SSP has been abolished. For a limited period you may be able to recover SSP for previous tax years. Stafftax clients are advised to call our offices for assistance if affected by the changes to SSP.
Statutory Maternity Pay (SMP)
The first six weeks of SMP are at 90% of average gross weekly earnings. The remaining weeks of the maternity pay period (up to a maximum of 33 weeks) are paid at the lower rate of £138.18 gross per week, or 90% if lower.
Statutory Paternity Pay (SPP)
Statutory Adoption Pay (SAP)
New fathers are entitled to two weeks' SPP, with a right to a further 13 weeks of unpaid leave. The current rate is £138.18 gross per week.
The current rate of SAP is £138.18 gross per week.
Redundancy pay entitlement
Aged between 18 and 21: half a week’s pay, or £225, whichever is lower
Aged between 22 and 40: one week’s pay, or £450, whichever is lower,
Between 41 and retirement: one and a half week’s pay, or £675, whichever is lower
NB. The employee qualifies for a multiple of the above for every year of continuous employment (for the same employer). Stafftax clients are advised to contact our offices for further assistance on accurately calculating redundancy pay.
National Minimum Wage (NMW), effective from 1 October 2013
£3.72 per hour gross for employees aged between 16 and 17
£5.03 per hour gross for employees aged between 18 and 20
£6.31 per hour gross for employees aged 21 years and over
Offset allowance per 7-day week: £34.37 (effective from 1 October 2013)
Student Loan Recovery
If your employee has a student loan and they are earning £16,910 gross per year, £1,409.16 gross per month, £325.19 gross per week or more, student loan repayments must be deducted from their salary.
*providing the employee is on a standard tax code
These rates are effective from 6 April 2014. The rates will be updated as and when they become available.