Tax Rates 2019 - 2020  

 
Published 11 January 2019 
Last updated 22 February 2019 
 
 
 
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Tax thresholds, rates and codes 

The amount of Income Tax you deduct from your employees depends on their tax code and how much of their taxable income is above their Personal Allowance. 

England and Northern Ireland 

PAYE tax rates and thresholds 
2019 to 2020 
Employee personal allowance 
240 per week 
 
1,042 per month 
 
12,500 per year 
English and Northern Irish basic tax rate 
20% on annual earnings above the PAYE tax threshold and up to 37,500 
English and Northern Irish higher tax rate 
40% on annual earnings from 37,501 to 150,000 
English and Northern Irish additional tax rate 
45% on annual earnings above 150,000 

Scotland 

PAYE tax rates and thresholds 
2019 to 2020 
Employee personal allowance 
240 per week 
 
1,042 per month 
 
12,500 per year 
Scottish starter tax rate 
19% on annual earnings above the PAYE tax threshold and up to £2,049 
Scottish basic tax rate 
20% on annual earnings from £2,050 to £12,444 
Scottish intermediate tax rate 
21% on annual earnings from £12,445 to £30,930 
Scottish higher tax rate 
41% on annual earnings from £30,931 to £150,000 
Scottish top tax rate 
46% on annual earnings above £150,000 

Wales 

PAYE tax rates and thresholds 
2019 to 2020 
Employee personal allowance 
240 per week 
 
1,042 per month 
 
12,500 per year 
Welsh basic tax rate 
20% on annual earnings above the PAYE tax threshold and up to £37,500 
Welsh higher tax rate 
40% on annual earnings from £37,501 to £150,000 
Welsh additional tax rate 
45% on annual earnings above £150,000 

Emergency tax codes 

The emergency tax codes from 6 April 2019 are: 
 
1250L W1 
1250L M1 
1250L X 

Class 1 National Insurance thresholds 

You can only make National Insurance deductions on earnings above the Lower Earnings Limit (LEL). 
Class 1 National Insurance thresholds 
2019 to 2020 
LEL 
118 per week 
 
512 per month 
 
6,136 per year 
Primary Threshold (PT) 
166 per week 
 
719 per month 
 
8,632 per year 
Secondary Threshold (ST) 
166 per week 
 
719 per month 
 
8,632 per year 
Upper Secondary Threshold (under 21) (UST) 
962 per week 
 
4,167 per month 
 
50,000 per year 
Apprentice Upper Secondary Threshold (apprentice under 25) (AUST) 
962 per week 
 
4,167 per month 
 
50,000 per year 
Upper Earnings Limit (UEL) 
962 per week 
 
4,167 per month 
 
50,000 per year 

Class 1 National Insurance rates 

Employee (primary) contribution rates 
 
Deduct primary contributions (employees National Insurance) from your employees pay through PAYE. 
National Insurance category letter 
Earnings at or above LEL up to and including PT 
Earnings above the PT up to and including UEL 
Balance of earnings above UEL 
0% 
12% 
2% 
0% 
5.85% 
2% 
nil 
nil 
nil 
H (Apprentice under 25) 
0% 
12% 
2% 
0% 
2% 
2% 
M (under 21) 
0% 
12% 
2% 
Z (under 21 - deferment) 
0% 
2% 
2% 

Class 1A National Insurance: expenses and benefits 

You must pay Class 1A National Insurance on work benefits you give to your employees, example a company mobile phone. You report and pay Class 1A at the end of each tax year. 
National Insurance class 
2019 to 2020 rate 
Class 1A 
13.8% 

Class 1B National Insurance: PAYE Settlement Agreements (PSAs) 

You pay Class 1B National Insurance if you have a PSA. This allows you to make one annual payment to cover all the tax and National Insurance due on small or irregular taxable expenses or benefits for your employees. 
National Insurance class 
2019 to 2020 rate 
Class 1B 
13.8% 

Minimum wage rates 

With effect from the 1 April 2019 there will be annual increases to the minimum wage and national living wage. 
Year 
25 and over 
21 to 24 
18 to 20 
Under 18 
Apprentices age under 19 
Apprentices over 19 but in first year  
of apprenticeship Accommodation offset 
2019 
£8.21 
£7.70 
£6.15 
£4.35 
£3.90 
£3.90 
2018 
£7.83 
£7.38 
£5.90 
£4.20 
£3.70 
£7.00 per day 
2017 
£7.50 
£7.05 
£5.60 
£4.05 
£3.50 
 
2016 
£7.20 
£6.95 
£5.55 
£4.00 
£3.40 
 
2015  
 
£6.70 
£5.30 
£3.87 
£3.30 
 
2014 
 
£6.50 
£5.13 
£3.79 
£2.73 
 
2013 
 
£6.31 
£5.03 
£3.72 
£2.68 
 
2012 
 
£6.19 
£4.98 
£3.68 
£2.65 
 
2011 
 
£6.08 
£4.98 
£3.68 
£2.60 
 
2010 
 
£5.93 
£4.92 
£3.64 
£2.50 
 

Statutory Pay Rates (Statutory Maternity, Paternity, Adoption and Shared Parental Pay) 1 April 2019 

SMP - weekly rate for first 6 weeks 
90% of the employees average weekly earnings 
SMP - weekly rate for remaining weeks 
£148.68 or 90% of the employees average weekly earnings, whichever is lower 
Statutory Paternity Pay (SPP) - weekly rate 
£148.68 or 90% of the employees average weekly earnings, whichever is lower 
Statutory Adoption Pay (SAP) - weekly rate for first 6 weeks 
90% of employees average weekly earnings 
SAP - weekly rate for remaining weeks 
£148.68 or 90% of the employees average weekly earnings, whichever is lower 
Statutory Shared Parental Pay (ShPP) - weekly rate 
£148.68 or 90% of the employees average weekly earnings, whichever is lower 
SMP/SPP/ShPP/SAP - proportion of your payments you can recover from HMRC 
92% if your total Class 1 National Insurance (both employee and employer contributions) is above £45,000 for the previous tax year 
 
103% if your total Class 1 National Insurance for the previous tax year is £45,000 or lower 

Statutory Sick Pay (SSP) 

The same weekly SSP rate applies to all employees. However, the amount you must actually pay an employee for each day they are off work due to illness (the daily rate) depends on the number of ‘qualifying days’ (QDs) they work each week. 
Unrounded daily rates 
Number of QDs in week 
1 day to pay 
2 days to pay 
3 days to pay 
4 days to pay 
5 days to pay 
6 days to pay 
7 days to pay 
13.46 
13.47 
26.93 
40.40 
53.86 
67.33 
80.79 
94.25 
15.71 
15.71 
31.42 
47.13 
62.84 
78.55 
94.25 
 
18.85 
18.85 
37.70 
56.55 
75.40 
94.25 
 
 
23.56 
23.57 
47.13 
70.69 
94.25 
 
 
 
31.42 
31.42 
62.84 
94.25 
 
 
 
 
47.13 
47.13 
94.25 
 
 
 
 
 
94.25 
94.25 
 
 
 
 
 
 

Student loan and Postgraduate loan recovery 

If your employees earnings are above the earnings threshold, record their student loan and postgraduate loan deductions in your payroll software. It will automatically calculate and deduct repayments from their pay. 
Rate or threshold 
2019 to 2020 rate 
Employee earnings threshold for Student loan Plan 1 
18,935 per year 
 
1,577.91 per month 
 
364.13 per week 
Employee earnings threshold for Student loan Plan 2 
25,725 per year 
 
2,143.75 per month 
 
494.71 per week 
Student loan deductions 
9% 
Employee earnings threshold for Postgraduate loan 
21,000 per year 
 
1,750.00 per month 
 
403.84 per week 
Postgraduate loan deductions 
6% 

Company cars: Advisory Fuel Rates (AFRs) 

Use AFRs to work out mileage costs if you provide company cars to your employees. 
 
The rates below apply from 1 March 2019. 
Engine size 
Petrol - amount per mile 
LPG - amount per mile 
1400cc or less 
11 pence 
7 pence 
1401cc to 2000cc 
14 pence 
8 pence 
Over 2000cc 
21 pence 
13 pence 
Engine size 
Diesel - amount per mile 
1600cc or less 
10 pence 
1601cc to 2000cc 
11 pence 
Over 2000cc 
13 pence 
Hybrid cars are treated as either petrol or diesel cars for this purpose. 
 
 
Advisory Electricity Rate for fully electric cars 
 
Amount per mile - 4 pence. 
 
Electricity is not a fuel for car fuel benefit purposes. 

Employee vehicles: Mileage Allowance Payments (MAPs) 

MAPs are what you pay your employees for using their own vehicle for business journeys. 
 
You can pay your employees an approved amount of MAPs each year without having to report them to HMRC. To work out the approved amount, multiply your employees business travel miles for the year by the rate per mile for their vehicle. 
Type of vehicle 
Rate per business mile 2019 to 2020 
Car 
For tax purposes: 45 pence for the first 10,000 business miles in a tax year, then 25 pence for each subsequent mile 
 
 
 
For National Insurance purposes: 45 pence for all business miles 
Motorcycle 
24 pence for both tax and National Insurance purposes and for all business miles 
Cycle 
20 pence for both tax and National Insurance purposes and for all business miles 
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