As we move into the new tax year we have put together a summary of the main changes that will affect both the employer and the employee.
- Personal allowance is increasing to £12500
- Standard tax code = 1250L
- From 6th April HMRC will no longer require subsistence receipts to be collected when using their Benchmark Scale rates, but Sapphire will continue to collect them as this is an FCSA requirement.
Percentages remain the same:
- Employees 12% between PT and UEL, 2% above the UEL.
- Employers 13.8% between PT and UST except employees under 21 and apprentices under 25, this is 0%, anything above UST is 13.8%.
The minimum pension contributions will be rising from 6th April. These are based on qualifying earnings, so between £6,136 and £50,000 per year.
A few facts about NMW:
- It is 20 years old! (first introduced in 1999)
- Initial rate for over 22’s was just £3.60/hour!
- Around £2m people will get a pay rise of up to 5% as a result of the latest increases
- SSP increases to £94.25 per week
- Statutory payments (SMP, SPP, SAP, SHPP) increases to £148.68
New loan type introduced from 6th April; Post Graduate Loans (PGL).
The threshold for 2019/20 is £21,000.
Earnings above £21,000 for PGL will be calculated at 6%.
Plan 1 – £18,935
Plan 2 – £25,725
National minimum wage now must be shown on payslips – Sapphire already show this.