Pay Rates and Thresholds 2020-21
PAYE & NIC Rates
From 6th April 2020 to 5th April 2021
- Emergency & Standard Tax Code - 1250L
- Employees with a standard tax code can earn £1,042 per month or £240 per week tax free
- 20% tax is due on earnings between £12,501 and £37,500 per annum
- 40% tax is due on earnings between £37,501 and £150,000 per annum
- 45% tax is due on earnings over £150,000 per annum
- Employer NIC is due on earnings over £732 per month or £169 per week
- Employee NIC is due on earnings over £792 per month or £183 per week
- Employees earning below £520 per month or £120 per week will be below the threshold for NICs
- Employers contributions are 13.8%
- Employee contributions are 12%
- No NI contributions are due for employees aged under 21 or apprentices aged under 25 earning under £50,000 per annum
- Employment allowance up to £4,000 can be claimed against employers NI (some restrictions apply)
Statutory Payments
From 6th April 2020 to 5th April 2021
- SSP is £95.85 per week
- SMP for first 6 weeks is 90% of average weekly earnings
- SMP/SPP/SAP/ShPP/SPBP is £151.20 or 90% of average weekly earnings whichever is lower
- 92% of SMP/SPP/SAP/ShPP/SPBP can be recovered if your total Class 1 NICs are above £45,000 for the previous tax year
- 103% of SMP/SPP/SAP/ShPP/SPBP can be recovered if your total Class 1 NICs are £45,000 or lower for the previous tax year
Student Loans
From 6th April 2020 to 5th April 2021
- Deductions are at 9% on earnings over £1615.83 per month (Plan 1) or £2214.58 per month (Plan 2)
- Postgrad loan deductions are 6% on earnings over £1750 per month