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National Minimum Wage

Changes from April 2018 will be as follows: -

Year

25 & over

21 to 24

18 to 20

Under 18

Apprentice

April 2017 (current)

£7.50

£7.05

£5.60

£4.05

£3.50

April 2018

£7.83

£7.38

£5.90

£4.20

£3.70

 

Income Tax and National Insurance

Personal allowance: £11,850

Standard Tax code: 1185L

Income tax: £1 – £34,500 @ basic rate 20%

                      £34,501 – 150,000 @ higher rate 40%

                      £150,001 and above @ additional rate 45%

Student Loan thresholds: Plan Type 1 £18,330

                                              Plan Type 2 £25,000

National insurance primary threshold: increase from £680 to £702 per month or £157 to £162 per week.

Statutory Payments

The earnings threshold for statutory payments has increased from £113 per week to £116 per week.

Statutory maternity pay/statutory adoption pay: weekly rate increase from £140.98 to £145.18; the first 6 weeks will remain at 90% of the employee’s average weekly earnings

Statutory paternity pay/shared parental pay: weekly rate increase to £145.18

SSP: weekly rate increase from £89.35 to £92.05

Auto Enrolment

The total minimum pension contributions for auto enrolment will be increasing from April 2018 to 5% of gross earnings. Employers must pay at least 2% of these and the remaining 3% can be made up by staff contributions. Alternatively, employers can choose to increase their contributions, thus reducing staff contributions. Employer contributions cannot fall below 2%. There will be a further increase in April 2019 as listed in the table below.

Date effective

Employer minimum contribution

Staff contribution

Total Minimum Contribution

Until 5 April 18

1%

1%

2%

6 April 18 to 5 April 19

2%

3%

5%

6 April 19 onwards

3%

5%

8%

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