Current rates and thresholds
Current tax thresholds
Your employer must register and deduct NI from your salary if you are paid £153 or more per week. Your employer must also register if you have another job, even if you are paid below the threshold.
If you are paid between £111 and £153 and you do not have another job, your employer should still register with HMRC although no Tax and NI will be due. This will enable you to receive state pension and other benefits. Tax is only deductable if you are paid £192* or more per week and you do not have another job.
Tax and NI payments
If your 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 2014
Statutory Sick Pay (SSP)
The current rate is £87.55 per week.
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
Please note that you qualify for a multiple of the above for every year of continuous employment (for the same employer).
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 you have a student loan and are earning £16,910 gross per year, £1,409.16 gross per month, £325.19 gross per week or more, your employer must deduct student loan repayments form your salary.
*providing you are on a standard tax code
These rates are effective from 6 April 2014. The rates will be updated as and when they become available.
Always agree a gross wage with your employee
Employers often agree a net (i.e. take-home) wage with their employee, but in reality they are always paid a gross salary, with tax and National Insurance Contributions deducted and paid to HMRC on a quarterly basis by the employer. Although many domestic employers tend to look on this as an additional cost, it is actually part of the employee's gross wage.Read more ...