2018/2019 Tax Year – Rates and Thresholds for Employers

9 months ago

The new tax year is approaching and it signals new rates for the national living wage and statutory pay, also new thresholds where employees start paying tax and national insurance. As staff are the most important asset to the licensed trade, it’s important to be aware of what the changes are and how they will affect your business.

The most basic change is with regards to the minimum that you need to pay your employees. The national living wage is increasing for all age categories of employees and the rates are detailed in www.cmspubaccountancy.co.uk/increase-in-national-minimum-wage/

Less straight-forward to calculate is statutory sick pay, which increases from £89.35 to £92.05 per week for all employees. However, the amount that you have to pay an employee who is off sick depends on how many qualifying days they are eligible to work within that week. You also only need to pay statutory sick pay if your employee is sick for 4 days or more.

The rates for statutory maternity pay, adoption pay and shared parental pay have all increased from £140.98 to £145.18 per week. However, for the first 6 weeks employees are entitled to 90% of their average weekly pay, the rates imposed by HMRC commence after 6 weeks for a further 33 weeks. Statutory paternity pay increases from £140.98 to £145.18 per week too but is only payable for 1-2 weeks.

The point at which employees start paying tax and national insurance will also increase on 6th April. The annual employees personal allowance increases from £11,500 to £11,850, which equates to £228 per week (from £221) and £988 per month (from £958). The annual threshold for national insurance payments also increases from £8,164 to £8,424 annually, or £162 weekly (from £157) and £702 monthly (from £680).

These are the rates outlined by HMRC, which provide you with the basic understanding of what you need to pay employees and at what point you need to deduct tax and national insurance. However, our dedicated Payroll department can process your payroll and deduct the right amount of tax, national insurance and make statutory payments for you, ensuring that you can concentrate on running your business.

For more information please call 0121 730 2269 or email enquiries@cmspubaccountancy.co.uk