National Minimum Wage
Changes from April 2024 will be as follows: –
Current Year |
|
21 & Over |
18 to 20 |
Under 18 |
Apprentice |
April 2024 |
|
£11.44 |
£8.60 |
£6.40 |
£6.40 |
Previous Year |
23 & Over |
21 to 22 |
18 to 20 |
Under 18 |
Apprentice |
April 2023 |
£10.42 |
£10.18 |
£7.49 |
£5.28 |
£5.28 |
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