Payroll Information From April 2024

National Minimum Wage

Changes from April 2024 will be as follows: –

Income Tax and National Insurance

Income Tax thresholds as indicated below:

Personal Allowance: £12,570

Standard Tax code: 1257L

Income tax: £12,571 – £50,270 @ basic rate 20%

                  £50,271 – 125,140 @ higher rate 40%

                  Over 125,140 @ additional rate 45%

Student Loan thresholds: Plan Type 1 £2082.50 per month

                                       Plan Type 2 £2,274.58 per month

                                       Plan Type 4 £2,616.25 per month

                                       Postgraduate Loan £1,750 per month

National insurance primary threshold remains at £1048 per month or £242 per week.

National insurance secondary threshold: remains at £758 per month or £175 per week.

Please note that the employee national insurance rates for all earnings between £1048 and £4189 will decrease from 10% to 8% in April 2024. 

Statutory Payments

The earnings threshold for statutory payments remains the same at £123 per week

Statutory maternity pay/statutory adoption pay: weekly rate increase from £172.48 to £184.03; the first 6 weeks will remain at 90% of the employee’s average weekly earnings

Statutory paternity pay/shared parental pay: weekly rate increases to £184.03

SSP: weekly rate increases from £109.40 to £116.75

Auto Enrolment

The Automatic Enrolment earnings threshold will remain at £10,000. The lower earnings limit of the qualifying earnings band will remain at £6,240 and the upper earnings limit of the qualifying band will remain at £50,270.

Minimum pension contributions remain at 3% employer and 5% employee

Employment Allowance

Only businesses with an employer national insurance bill of £100,000 or less in the previous tax year will be eligible to claim Employment Allowance.

For businesses who are eligible to claim it, the Employment Allowance is £5000 for the year.

Apprenticeship Levy

The Apprenticeship Levy is an amount paid at a rate of 0.5% of an employer’s annual PAYE bill. As an employer you have to pay the Apprenticeship
Levy each month if you;

·     have an annual pay bill of more than £3 million (£250,000 per month)

·     are connected to any companies or charities and have a combined annual pay bill of more than £3 million

Employers have an annual allowance of £15,000 with which to offset their levy liability.

·        Single employers, who are not connected to another company or charity will have an Apprenticeship Levy allowance of £15,000

·        Employers that are connected to another company or charity will have to share the £15,000 allowance amongst all PAYE schemes