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Payroll Tax Year Changes 2019/2020

As an employer, it is important to stay on top of all the changes that come info effect every April. We've put together a summary of the key fact and figures.


Auto Enrolment increases (phasing)

From April 6 2019 the employer minimum will increase to 3% with a total minimum of 8%.

DatesMinimum employer contributionMinimum employee contributionTotal minimum contribution
Before 5 April 20181%1%2%
From 6 April 20193%5%8%

QuickBooks Online will have an automatic uplift contribution, QuickBooks Desktop users will have to make sure they change the contribution before running their first period in 2019/20.


Auto Enrolment thresholds for 2019/20

The upper and lower limits for Auto Enrolment are increasing in line with National Insurance thresholds. The earnings trigger remains the same.


Personal Tax Allowance and tax codes

UK Tax Allowance has increased

  • Emergency tax code is now 1250 week 1/month 1
  • L suffix codes will increase by 65 e.g 1185L becomes 1250L
  • M suffix codes will increase by 71 e.g 1304M becomes 1375M
  • N suffix codes will increase by 59 e.g 1066N becomes 1125N

Higher Rate of Income Tax has increased from £34,500 to £37,500. No change to basic or additional rates and no changes to the tax rates.

QuickBooks Online will automatically update the lift in tax codes. QuickBooks Desktop will need to amend the details before running their first period of 2019/20.


Scottish Rate of Income Tax (SRIT)

  • Starter Rate 19%
  • Basic Rate 20%
  • Intermediate Rate 21%
  • Higher Rate 41%
  • Top Rate 46%


Welsh Rate of Income Tax (WRIT) (Same as the UK)

  • Basic Rate 20%
  • Higher Rate 40%
  • Additional Rate 45%


National Insurance update

No changes to the NI rates and no changes to Employment Allowance (£3,000 per year).


Changes to NI thresholds:


  • LEL - From £116 to £118
  • PT - From £162 to £166
  • ST - From £162 to £166
  • UEL/UST/AUST - From £892 to £962


Statutory Payments

  • Statutory Sick Pay (SSP) from £92.05 to £94.25
  • Statutory Maternity Pay (SMP) from £145.18 to £148.68
  • Statutory Adoption Pay (SAP) from £145.18 to £148.68
  • Statutory Paternity Pay (SPP) from £145.18 to £148.68
  • Statutory Paternal Pay (ShPP) from £145.18 to £148.68

There are no changes to the employer recovery of statutory paternal leave payments.


Student & Postgraduate Loans

The Goverment have increased both Plan 1 & Plan 2 Student Loan repayment thresholds for 2019/20.

  • Plan 1 =£18,935 (increase of £605)
  • Plan 2 = £25,725 (increase of £725)

Postgraduate loans:

April 2019 sees the first postgraduate loan being required to be recovered via payroll on earnings over £21,000 at a rate of 6%.


Court Orders

Changes to earnings arrestment deductions & protected minimum balance from April 2019:

An earnings arrestment is where a creditor can recover unpaid debts by making the individual's employer deduct money directly from their wages and the employer then sends the money to the creditor.

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