Unless otherwise stated, these figures apply from 6 April 2019 to 5 April 2020.
You normally operate PAYE as part of your payroll so HMRC can collect Income Tax and National Insurance from your employees.
Your payroll software will calculate how much tax and National Insurance to deduct from your employees’ pay.
The amount of Income Tax you deduct from your employees depends on their tax code and how much of their taxable income is above their Personal Allowance.
| PAYE tax rates and thresholds | 2019 to 2020 |
|---|---|
| Employee personal allowance | £240 per week £1,042 per month £12,500 per year |
| English and Northern Irish basic tax rate | 20% on annual earnings above the PAYE tax threshold and up to £37,500 |
| English and Northern Irish higher tax rate | 40% on annual earnings from £37,501 to £150,000 |
| English and Northern Irish additional tax rate | 45% on annual earnings above £150,000 |
| PAYE tax rates and thresholds | 2019 to 2020 |
|---|---|
| Employee personal allowance | £240 per week £1,042 per month £12,500 per year |
| Scottish starter tax rate | 19% on annual earnings above the PAYE tax threshold and up to £2,049 |
| Scottish basic tax rate | 20% on annual earnings from £2,050 to £12,444 |
| Scottish intermediate tax rate | 21% on annual earnings from £12,445 to £30,930 |
| Scottish higher tax rate | 41% on annual earnings from £30,931 to £150,000 |
| Scottish top tax rate | 46% on annual earnings above £150,000 |
| PAYE tax rates and thresholds | 2019 to 2020 |
|---|---|
| Employee personal allowance | £240 per week £1,042 per month £12,500 per year |
| Welsh basic tax rate | 20% on annual earnings above the PAYE tax threshold and up to £37,500 |
| Welsh higher tax rate | 40% on annual earnings from £37,501 to £150,000 |
| Welsh additional tax rate | 45% on annual earnings above £150,000 |
The emergency tax codes from 6 April 2019 are:
Find out more about emergency tax codes.
You can only make National Insurance deductions on earnings above the Lower Earnings Limit (LEL).
| Class 1 National Insurance thresholds | 2019 to 2020 |
|---|---|
| LEL | £118 per week £512 per month £6,136 per year |
| Primary Threshold (PT) | £166 per week £719 per month £8,632 per year |
| Secondary Threshold (ST) | £166 per week £719 per month £8,632 per year |
| Upper Secondary Threshold (under 21) (UST) | £962 per week £4,167 per month £50,000 per year |
| Apprentice Upper Secondary Threshold (apprentice under 25) (AUST) | £962 per week £4,167 per month £50,000 per year |
| Upper Earnings Limit (UEL) | £962 per week £4,167 per month £50,000 per year |
Deduct primary contributions (employee’s National Insurance) from your employees’ pay through PAYE.
| National Insurance category letter | Earnings at or above LEL up to and including PT | Earnings above the PT up to and including UEL | Balance of earnings above UEL |
|---|---|---|---|
| A | 0% | 12% | 2% |
| B | 0% | 5.85% | 2% |
| C | nil | nil | nil |
| H (apprentice under 25) | 0% | 12% | 2% |
| J | 0% | 2% | 2% |
| M (under 21) | 0% | 12% | 2% |
| Z (under 21 – deferment) | 0% | 2% | 2% |
You pay secondary contributions (employer’s National Insurance) to HMRC as part of your PAYE bill.
Pay employers’ PAYE tax and National Insurance.
| National Insurance category letter | Earnings at or above LEL up to and including ST | Earnings above ST up to and including UEL, UST, AUST | Balance of earnings above UEL, UST, AUST |
|---|---|---|---|
| A | 0% | 13.80% | 13.80% |
| B | 0% | 13.80% | 13.80% |
| C | 0% | 13.80% | 13.80% |
| H (apprentice under 25) | 0% | 0% | 13.80% |
| J | 0% | 13.80% | 13.80% |
| M (under 21) | 0% | 0% | 13.80% |
| Z (under 21 – deferment) | 0% | 0% | 13.80% |
You must pay Class 1A National Insurance on work benefits you give to your employees, example a company mobile phone. You report and pay Class 1A at the end of each tax year.
| National Insurance class | 2019 to 2020 rate |
|---|---|
| Class 1A | 13.8% |
Pay employers’ Class 1A National Insurance.
You pay Class 1B National Insurance if you have a PSA. This allows you to make one annual payment to cover all the tax and National Insurance due on small or irregular taxable expenses or benefits for your employees.
| National Insurance class | 2019 to 2020 rate |
|---|---|
| Class 1B | 13.8% |
Pay Class 1B National Insurance.
The National Minimum Wage is the minimum pay per hour almost all workers are entitled to by law. Use the National Minimum Wage calculator to check if you’re paying a worker the National Minimum Wage or if you owe them payments from past years.
These rates apply from 1 April 2019.
| Category of worker | Hourly rate |
|---|---|
| Aged 25 and above (national living wage rate) | £8.21 |
| Aged 21 to 24 inclusive | £7.70 |
| Aged 18 to 20 inclusive | £6.15 |
| Aged under 18 (but above compulsory school leaving age) | £4.35 |
| Apprentices aged under 19 | £3.90 |
| Apprentices aged 19 and over, but in the first year of their apprenticeship | £3.90 |
National Minimum Wage rates for previous years.
Use the maternity and paternity calculator for employers to calculate your employee’s Statutory Maternity Pay (SMP), paternity or adoption pay, their qualifying week, average weekly earnings and leave period.
These rates apply from 7 April 2019.
| Type of payment or recovery | 2019 to 2020 rate |
|---|---|
| SMP – weekly rate for first 6 weeks | 90% of the employee’s average weekly earnings |
| SMP – weekly rate for remaining weeks | £148.68 or 90% of the employee’s average weekly earnings, whichever is lower |
| Statutory Paternity Pay (SPP) – weekly rate | £148.68 or 90% of the employee’s average weekly earnings, whichever is lower |
| Statutory Adoption Pay (SAP) – weekly rate for first 6 weeks | 90% of employee’s average weekly earnings |
| SAP – weekly rate for remaining weeks | £148.68 or 90% of the employee’s average weekly earnings, whichever is lower |
| Statutory Shared Parental Pay (ShPP) – weekly rate | £148.68 or 90% of the employee’s average weekly earnings, whichever is lower |
| SMP/SPP/ShPP/SAP – proportion of your payments you can recover from HMRC | 92% if your total Class 1 National Insurance (both employee and employer contributions) is above £45,000 for the previous tax year 103% if your total Class 1 National Insurance for the previous tax year is £45,000 or lower |
The same weekly SSP 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’ (QDs) they work each week.
Use the SSP calculator to work out your employee’s sick pay, or use these rates.
| Unrounded daily rates |
|---|