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Current Tax and National Insurance Thresholds (2016-17)

Lower Earnings Limit £112 gross per week or less If you pay your employee the LEL or below, there is nothing due to HMRC and your employee will not be entitled to any state pensions or benefits.
Bracket between Lower Earnings Limit and NI Threshold Between £112-£156 gross per week If you pay your employee between these figures there is nothing due to HMRC, however you should still register so your employee will be entitled to state pension and benefits.
Employer's (Secondary) NI Threshold £156 gross per week or more If you pay your employee £156 or more you must register and pay Employer’s NI.
Employee's (Primary) NI Threshold £155 gross per week or more If you pay your employee £155 or more you must now deduct National Insurance on behalf of your employee, as well as pay Employer’s NI.
Tax Threshold Over £212 gross per week If you pay your employee £212 or more you must now also deduct tax on from your employee.

Tax and NI Payments

If your Tax and NI bill is below £1500 per month you only have to pay the Tax and NI to HMRC on a quarterly basis. Be aware that late payments can result in hefty fines and interest being applied.

Payment Deadlines

19 January 19 April 19 July 19 October
If your monthly liability bill exceeds £1500 per month you must pay HMRC every month.

National Minimum Wage (NMW)

From 6 April 2016

Age 16-17 £3.87 per hour gross
Age 18-20 £5.30 per hour gross
Age 21-25 £6.70 per hour gross
Age 25+ £7.20 per hour gross
Offset Allowance £37.45 per 7-day week

Redundancy Pay Entitlement

Age 18-21 Half a week's pay or £237.50, whichever is lower
Age 22-40 One week's pay or £475, whichever is lower
Age 41-retirement One and half week's pay or £712.50, whichever is lower
Stafftax clients are advised to call our offices for further assistance on accurately calculating Redundancy Pay.

Statutory Maternity Pay (SMP)

The first 6 weeks of SMP are paid at 90% of average gross weekly earnings. The remaining weeks of the maternity pay period (up to a maximum of 33 weeks) are paid at the rate of £139.58 gross per week, or 90% of average gross weekly earnings, whichever is lower.

Statutory Sick Pay (SSP)

£88.45 gross per week Since 6 April 2014 recovery of SSP has been abolished. 

Student Loan Recovery

£336 gross per week If your employee has a student loan and they are earning £16,910 gross per year (£1,409.16 gross per month, £325.19 gross per week) or more, student loan repayments must be deducted from their salary.
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