Tax Rates 2018 - 2019  

 
Published 4 January 2018 
Last updated 22 February 2019 
 
 
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Tax thresholds, rates and codes 

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. 

England, Wales & Northern Ireland 

PAYE tax rates and thresholds 
2018 to 2019 
Employee personal allowance 
£228 per week 
 
£998 per month 
 
£11,85044 per year 
UK basic tax rate 
20% on annual earnings above the PAYE tax threshold and up to 34,500 
UK higher tax rate 
40% on annual earnings from 34,501 to 150,000 
UK additional tax rate 
45% on annual earnings above 150,000 

Scotland 

PAYE tax rates and thresholds 
2018 to 2019 
Employee personal allowance 
£228 per week 
 
£998 per month 
 
£11,850 per year 
Scottish starter tax rate 
19% on annual earnings above the PAYE tax threshold and up to £2,000 
Scottish basic tax rate 
20% on annual earnings from £2,001 to £12,150 
Scottish intermediate tax rate 
21% on annual earnings from £12,151 to £31,580 
Scottish higher tax rate 
41% on annual earnings from £31,581 to £150,000 
Scottish top tax rate 
46% on annual earnings above £150,000 

Emergency tax codes 

The emergency tax codes from 6 April 2018 are: 
 
1185L W1 
1185L M1 
1185L X 

Class 1 National Insurance thresholds 

You can only make National Insurance deductions on earnings above the Lower Earnings Limit (LEL). 
Class 1 National Insurance thresholds 
2019 to 2020 
LEL 
£116 per week 
 
£503 per month 
 
£6,032 per year 
Primary Threshold (PT) 
£162 per week 
 
£702 per month 
 
£8,424 per year 
Secondary Threshold (ST) 
£162 per week 
 
£702 per month 
 
£8,424 per year 
Upper Secondary Threshold (under 21) (UST) 
£892 per week 
 
£3,863 per month 
 
£46,350 per year 
Apprentice Upper Secondary Threshold (apprentice under 25) (AUST) 
£892 per week 
 
£3,863 per month 
 
£46,350 per year 
Upper Earnings Limit (UEL) 
£892 per week 
 
£3,863 per month 
 
£46,350 per year 

Class 1 National Insurance rates 

Employee (primary) contribution rates 
 
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 
0% 
12% 
2% 
0% 
5.85% 
2% 
nil 
nil 
nil 
H (Apprentice under 25) 
0% 
12% 
2% 
0% 
2% 
2% 
M (under 21) 
0% 
12% 
2% 
Z (under 21 - deferment) 
0% 
2% 
2% 
Employer (secondary) contribution rates 
 
You pay secondary contributions (employer’s National Insurance) to HMRC as part of your PAYE bill. 

Class 1A National Insurance: expenses and benefits 

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 
2018 to 2019 rate 
Class 1A 
13.8% 

Class 1B National Insurance: PAYE Settlement Agreements (PSAs) 

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 
2018 to 2019 rate 
Class 1B 
13.8% 

Minimum wage rates 

With effect from the 1 April 2019 there will be annual increases to the minimum wage and national living wage. 
Year 
25 and over 
21 to 24 
18 to 20 
Under 18 
Apprentices age under 19 
Apprentices over 19 but in first year  
of apprenticeship 
2018 
£7.83 
£7.38 
£5.90 
£4.20 
£3.70 
£3.70 
2017 
£7.50 
£7.05 
£5.60 
£4.05 
£3.50 
 
2016 
£7.20 
£6.95 
£5.55 
£4.00 
£3.40 
 
2015  
 
£6.70 
£5.30 
£3.87 
£3.30 
 
2014 
 
£6.50 
£5.13 
£3.79 
£2.73 
 
2013 
 
£6.31 
£5.03 
£3.72 
£2.68 
 
2012 
 
£6.19 
£4.98 
£3.68 
£2.65 
 
2011 
 
£6.08 
£4.98 
£3.68 
£2.60 
 
2010 
 
£5.93 
£4.92 
£3.64 
£2.50 
 

Statutory Pay Rates (Statutory Maternity, Paternity, Adoption and Shared Parental Pay) 1 April 2019 

SMP - weekly rate for first 6 weeks 
90% of the employee’s average weekly earnings 
SMP - weekly rate for remaining weeks 
£145.18 or 90% of the employee’s average weekly earnings, whichever is lower 
Statutory Paternity Pay (SPP) - weekly rate 
£145.18 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 
£145.18 or 90% of the employee’s average weekly earnings, whichever is lower 
Statutory Shared Parental Pay (ShPP) - weekly rate 
£145.18 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 

Statutory Sick Pay (SSP) 

The same weekly SSP rate applies to all employees. However, the amount that you must actually pay an employee for each day they are off work due to illness (the daily rate) depends on the number of ‘qualifying days’ (QDs) they work each week. 
Unrounded daily rates 
Number of QDs in week 
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 
£13.1500 
£13.14 
£26.30 
£39.45 
£52.60 
£65.75 
£78.90 
£92.05 
£15.3416 
£15.35 
£30.69 
£46.03 
£61.37 
£76.71 
£92.05 
 
£18.4100 
£18.41 
£36.82 
£55.23 
£73.64 
£92.05 
 
 
£23.0125 
£23.02 
£46.03 
£69.04 
£92.05 
 
 
 
£30.6833 
£30.69 
£61.37 
£92.05 
 
 
 
 
£46.0250 
£46.03 
£92.05 
 
 
 
 
 
£92.0500 
£92.05 
 
 
 
 
 
 

Student loan recovery 

If your employees’ earnings are above the earnings threshold, record their student loan and postgraduate loan deductions in your payroll software. It will automatically calculate and deduct repayments from their pay. 
Rate or threshold 
2018 to 2019 rate 
Employee earnings threshold for Student loan Plan 1 
£18,330 per year 
 
£1,527.50 per month 
 
£352.50 per week 
Employee earnings threshold for Student loan Plan 2 
£25,000 per year 
 
£2,083.33 per month 
 
£480.76 per week 
Student loan deductions 
9% 

Company cars: Advisory Fuel Rates (AFRs) 

Use AFRs to work out mileage costs if you provide company cars to your employees. 
 
The rates below apply from 1 March 2019. 
Engine size 
Petrol - amount per mile 
LPG - amount per mile 
1400cc or less 
11 pence 
7 pence 
1401cc to 2000cc 
14 pence 
8 pence 
Over 2000cc 
21 pence 
13 pence 
Engine size 
Diesel - amount per mile 
1600cc or less 
10 pence 
1601cc to 2000cc 
11 pence 
Over 2000cc 
13 pence 
Hybrid cars are treated as either petrol or diesel cars for this purpose. 
 
 
Advisory Electricity Rate for fully electric cars 
 
Amount per mile - 4 pence. 
 
Electricity is not a fuel for car fuel benefit purposes. 

Employee vehicles: Mileage Allowance Payments (MAPs) 

MAPs are what you pay your employees for using their own vehicle for business journeys. 
 
You can pay your employees an approved amount of MAPs each year without having to report them to HMRC. To work out the approved amount, multiply your employee’s business travel miles for the year by the rate per mile for their vehicle. 
Type of vehicle 
Rate per business mile 2019 to 2020 
Car 
For tax purposes: 45 pence for the first 10,000 business miles in a tax year, then 25 pence for each subsequent mile 
 
 
 
For National Insurance purposes: 45 pence for all business miles 
Motorcycle 
24 pence for both tax and National Insurance purposes and for all business miles 
Cycle 
20 pence for both tax and National Insurance purposes and for all business miles 
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