Current tax thresholds
An employer must register and pay National Insurance contributions on behalf of their employee if they pay their employee £149* or more per week. An employer must also register if their employee has another job, even if their employee is paid below the threshold.
If an employer pays between £109 (the Lower Earnings Limit or LEL) and £148 and the employee does not have another job they should still register with HMRC as an employer although no Tax and National Insurance Contributions will be due. This will enable the employee to receive state pension and other benefits.
Tax is payable if the employee is paid £182* or more per week and they do not have another job. If the employee does have another job, then Tax may be payable even if in this particular employment they are paid below the £182* weekly threshold.
Tax and NI payments
As an employer, 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 2013
19 July 2013
19 October 2013
19 January 2014
Statutory Sick Pay (SSP)
The current rate is £86.70 per week. Please refer to the Statutory Sick Pay page for more information.
Statutory Maternity Pay (SMP)
The first six weeks of SMP are paid 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 rate of £136.78 gross per week, or 90% of average gross weekly earnings, whichever is lower. Please refer to the Statutory Maternity Pay page for more information.
Statutory Paternity Pay (SPP)
New fathers are entitled to two weeks' Ordinary SPP and may be eligible to take up to 26 weeks Additional Paternity Leave and Pay. The current rate is £136.78. For more information, please refer to the Statutory Paternity Pay page.
Statutory Adoption Pay (SAP)
The current rate of SAP is £136.78. For more information, please refer to the Statutory Adoption Pay page.
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 the employee qualifies for a multiple of the above for every full year of continuous employment (for the same employer). For more information, please refer to the Redundancy Pay page.
National Minimum Wage (NMW), effective from 1st October 2012
£3.68 per hour gross for employees aged between 16 and 17
£4.98 per hour gross for employees aged between 18 and 20
£6.19 per hour gross for employees aged 21 years and over
Offset allowance per 7-day week: £33.74, effective from 1st October 2012
*providing the employee is on a standard tax code (810L).
These rates are effective from 6 April 2013 and are the minimum as required by law. The page will be updated as and when new statutory rates information becomes available.