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Employers Payroll Update 2019-20 – Part 1

Welcome to the first of two blogs on payroll matters employers need to be aware of for the 2019-20 financial year. There are several developments in payroll legislation coming into operation from 6 April 2019 and they are outlined briefly below. We would be happy to explain these changes, should you need further clarification please contact us.

National Minimum Wage (NMW) and National Living Wage (NLW)

From 1 April 2019 the new rates will be as follows:

  • £8.21 per hour – 25 years old and over
  • £7.70 per hour – 21-24 years old
  • £6.15 per hour – 18-20 years old
  • £4.35 per hour – 16-17 years old
  • £3.90 for apprentices under 19 or 19 or over who are in the first year of apprenticeship.

Year end filing deadlines for 2018-2019

Remember that you should send your final submission to HMRC by the deadline of 19 April 2019 and you need to distribute P60’s to all of your employees by 31 May 2019.

Statutory payments increases from 06 April 2019

Statutory Sick Pay (SSP) will increase from £92.05 to £94.25 per week

Parental payments – SMP/SAP/SPP/ShPP will increase from £145.18 to £148.68 per week

Tax codes and allowances

The personal tax allowance will be increased from £11,850 to £12,500 for 2019/2020.  Employees can earn up to £240 a week and £1,041 a month before tax is applied.  The emergency tax code for 2019/2020 will be 1250L, which is an increase of 65 points; this increase will also be applied to any tax codes with a suffix of L. Tax codes with a suffix of M will be increased by 72 pts and codes with a suffix of N will be increased by 59 pts.  HMRC will advise via the P9 of any other changes.

The new tax rates per annum (excluding Scotland) will be:

  • Basic rate                    20%        from £0 to £37,500
  • Higher rate                40%        from £37,501 to £150,000
  • Additional rate          45%        from £150,001 and above

If you have any employees who are Scottish residents they must ensure that HMRC are aware of their current address and employers must use the Scottish Income Tax (SIT) rates and thresholds.

National Insurance contributions – rates and allowances

From 6 April 2019 the threshold changes will be as follows:


£ per week

2018/19 2019/20
Lower earnings limit, primary Class 1 £116 £118
Secondary threshold £162 £166
Primary threshold £162 £166
Upper earnings limit, primary Class 1 £892 £962
Employees’ primary Class 1 rate between primary threshold and upper earnings limit 12% 12%
Employees’ primary Class 1 rate above upper earnings limit 2% 2%
Class 1A rate on employer provided benefits (1) 13.80% 13.80%
Employers’ secondary Class 1 rate above secondary threshold 13.80% 13.80%

Payroll Updates 2019-20

Next week’s blog will cover payroll updates on auto-enrolment, itemised payslips, postgraduate loans and apprenticeship levy funds. We offer a comprehensive and confidential payroll service for our clients. This ensures you are fully compliant with the latest payroll legislation and guidance, while also saving you and your team time on the processing of payroll. Contact us for more information.

Jeanette White



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