There is always
new rates and thresholds that come in to place in the new financial year.
The National Minimum
Wage rate has gone up, however, the personal threshold has stayed the same.
Personal
Allowance
The personal
allowance is the amount you can earn without having to pay any tax.
This financial
year 2023-24 is £12,570
|
PAYE Tax Rate
|
Rate of Tax
|
Annual Earnings
|
|
Personal Allowance
|
0%
|
£0 - £12,570
|
|
Basic Rate
|
20%
|
£12,571 - £37,700
|
|
Higher Tax Rate
|
40%
|
£37,701 - £125,140
|
|
Additional Tax Rate
|
45%
|
£125,140+
|
National
Insurance Rates
As an employee,
you will pay Class 1 NI rates. If you earn above the primary threshold, then
you will play Class 1 NI. The primary threshold for 2023-24 are £242 a week,
or, £1,048 a month, or, £12,570 a year.
You will pay an
additional 2% if you are in the upper earning limit. The upper earning limit
are £967 a week, or, £4,189 a month, or, £50,270 a year
|
Class 1 National Insurance
|
|
National Insurance Category
|
Earnings above Primary Threshold
|
Balance of earning above Upper Earning
Limit
|
|
Standard (A)
|
12%
|
2%
|
|
State Pension Age (C)
|
0%
|
0%
|
|
Under 21 (M)
|
12%
|
2%
|
As an employer,
you will have to pay national insurance on your staff members. This includes if
you are a sole director on payroll. The rate applies to earnings above the
secondary threshold. The secondary threshold for 2023-24 are £175 a week, or, £758
a month, or, £9,100 a year.
|
Employer National Insurance
|
|
National Insurance Category
|
Earnings above Primary Threshold
|
Balance of earning above Upper Earning
Limit
|
|
Standard (A)
|
13.8%
|
13.8%
|
|
State Pension Age (C)
|
13.8%
|
13.8%
|
|
Under 21 (M)
|
0%
|
13.8%
|
Employment
Allowance
Employment
Allowance allows eligible employers to reduce their annual National Insurance
liability by up to the annual allowance amount. For the year 2023-24 this is
£5,000
National
Minimum Wage
The National
Minimum Wage is the minimum pay per hour all workers are entitled to by law.
These rates apply from 1 April 2023
|
Category of Worker
|
Hourly Rate
|
|
Aged 23 and above
|
£10.42
|
|
Aged 21 – 22
|
£10.18
|
|
Aged 18 – 20
|
£7.49
|
|
Aged Under 18
|
£5.28
|
|
Apprentice
|
£5.28
|
SSP
Statutory Sick Pay
Employees are
entitled to SSP if they are off work for 3+ days. The same weekly Statutory
Sick Pay rate applies to all employees. However, the amount you must actually
pay an employee for each day they’re off work due to illness (the daily rate)
depends on the number of ‘qualifying days’ they work each week.
|
No. of Qualifying Days
|
1 Day to pay
|
2 Days to pay
|
3 Days to pay
|
4 Days to pay
|
5 Days to pay
|
6 Days to pay
|
7 Days to pay
|
|
7
|
£15.63
|
£31.26
|
£46.89
|
£62.52
|
£78.15
|
£93.78
|
£109.40
|
|
6
|
£18.24
|
£36.47
|
£54.70
|
£72.94
|
£91.17
|
£109.40
|
|
|
5
|
£21.88
|
£43.76
|
£65.64
|
£87.52
|
£109.40
|
|
|
|
4
|
£27.35
|
£54.70
|
£82.05
|
£109.40
|
|
|
|
|
3
|
£36.47
|
£72.94
|
£109.40
|
|
|
|
|
|
2
|
£54.70
|
£109.40
|
|
|
|
|
|
|
1
|
£109.40
|
|
|
|
|
|
|
If you want to
ensure you are not breaking the payroll rules with NMW and SSP, message us to
see how we can help.
If you do not
understand the personal allowance threshold give us a call on our Cardiff or
Bridgend office where the team will be happy to help.
