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.
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. 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 2014
£3.79 per hour gross for employees aged between 16 and 17
£5.13 per hour gross for employees aged between 18 and 20
£6.50 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.