Changes to Rates and Thresholds from April 2019

As the new tax year approaches it is important to review the changes to rates and thresholds for the year ahead and make any changes to ensure your business is compliant.

National Living Wage and the National Minimum Wage

The rates for the National Living Wage and the National Minimum Wage increases from 1st April 2019

Age 25 and over – from the current rate of £7.83 to £8.21
Age 21 to 24 – from £7.38 to £7.70
Age 18 to 20 – from £5.90 to £6.15
Under 18 – from £4.20 to £4.35
Apprentice – from £3.70 to £3.90

Apprentices are entitled to the Apprentice rate if they are aged under 19 or aged 19 or over and in the first year of their apprenticeship.

Where apprentices are over 19 and have completed the first year of their apprenticeship they are entitled to the minimum wage.

Statutory Family Pay rates

The weekly amount for statutory family pay will also increase to £148.68 from 6th April 2019. This rate will apply to maternity pay, adoption pay, paternity pay and shared parental pay and maternity allowance.

Statutory Sick Pay

The weekly rate for statutory sick pay will increase to £94.25 from 6th April 2019

Tax Rates, Thresholds and codes

Employee Personal Allowance will rise to £12500 a year (£240 a week and £1042 a month

England, Wales and Northern Ireland

Basic Rate: 20% of annual earnings above the PAYE threshold up to £37500
Higher Rate: 40% of annual earnings from £37501 to £150000
Additional Higher Rate: 45% of annual earnings above £150000

Scottish Tax Rates

The rates for Scotland are different

Starter Rate: 19% from £12501 to £14549
Basic Rate: 20% from £14550 to £24944
Intermediate Rate: 21% from £24945 to £43430
Higher Rate: 41% from £43431 to £150000
Additional Higher Rate: 46% over £150000

National Insurance

Both Employers and Employees rates for National Insurance have also changed with the Employees Class 1 threshold rising to £8632 a year. Over this amount National Insurance is payable at 12% of earnings up to £50000. For earnings above £50000 the rate is 2%.

For more detail on other rates and thresholds information is available on:
www.gov.uk/guidance/rates-and-thresholds-for-employers-2019-to-2020

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