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Payroll Changes for April 2017

A number of payroll related changes will take effect from April 2017. We’ve listed out changes that will affect your payroll for the tax year 2017/18 below.

National minimum wage: from 1st April 2017 the national minimum wage rates will be changing. You must ensure that you are paying your staff the correct rate as detailed below.

  Current Rate April 2017
25 and over £7.20 £7.50
21 - 24 £6.95 £7.05
18 - 20 £5.55 £5.60
Under 18 £4.00 £4.05
Apprentice* £3.40 £3.50

*Apprentices are entitled to the apprentice rate if they’re either aged under 19, or aged 19 or over and in the first year of their apprenticeship.

Personal Allowance: increase from £11,000 to £11,500, which means the standard tax code will be 1150L. Emergency tax codes will be 1150L M1, 1150L W1 or 1150L X

Income tax bands: increases as follows: -

  • Basic rate (20%) from £32,000 to £33,500
  • Higher rate (40%) from £43,000 to £45,000
  • Additional rate (45%) will remain the same at £150,000

National insurance lower earnings limit: increase to from £672 to £680 per month or £155 to £157 per week

Statutory maternity pay/statutory adoption pay: weekly rate increase from £139.58 to £140.98; the first 6 weeks will remain at 90% of the employee’s average weekly earnings

Statutory paternity pay: weekly rate increase to £140.98 

SSP: weekly rate increase from £88.45 to £89.35

Apprenticeship Levy: from April 2017, employers with an annual gross wage bill of £3 million or more will be obliged to contribute 0.5% of their annual pay bill towards an apprenticeship levy. This will be reduced by an apprenticeship levy allowance of £15,000 each year. 

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