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Current rates and thresholds PDF Print E-mail

Thresholds for paying Tax and NI and statutory payments such as statutory sick pay and statutory maternity pay change at least once every tax year. Stafftax makes sure you are kept up to date with the latest rates.

Current tax thresholds
You must register as an employer and deduct NI from your employee if you pay them £153 or more per week. You must also register if your employee has another job, even if you pay them below the threshold.

If you pay between £111 and £153 and your employee does not have another job you should still register as an employer although no Tax and NI will be due. This will enable your employee to receive state pension and other benefits. Tax is only payable if you pay your employee £192* or more per week and they do not have another job.

Tax and NI payments
If your monthly tax and NI bill is below £1,500 you only have to pay tax and NI to HMRC on a quarterly basis.

Payment dates
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)
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.

Statutory Adoption Pay (SAP)
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. Your employee qualifies for a multiple of the above for every year of continuous employment (for the same employer). Stafftax clients are advised to call 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 your 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.

 

employment guide

Stafftax for domestic employers

When you employ domestic staff in the UK you not only have to find the best possible candidate for your household, you also become an employer.  As such you take on a host of responsibilities. For instance, you must draw up an employment contract with your employee within eight weeks of their start date and give them a payslip every time they get paid.  It is also a legal responsibility that you have employer’s liability insurance. 

In addition you must also make sure that you pay your employee at least the national minimum wage or above, so you need to have a good understanding of the basics of employment law. It's surprisingly easy to make mistakes when you're juggling issues such as holiday entitlement, statutory sick pay, benefits in kind, statutory maternity pay and redundancy pay. At Stafftax we can take care of the payroll aspects for you so you can concentrate on the your family, your household and the more important things in life.

about Stafftax why use Stafftax? our philosophy

 

employment law

Employing European nationals

Most nationals from the European Economic Area (EEA) can enter and work in the UK without restrictions. You will need to ask nationals from all EEA countries to produce a document showing their nationality since their are specific restrictions for certain nationalities.

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