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PAYE and Pension Rates and Thresholds

PAYE Tax Threshold 2019 - 2020;

£240.00 per week

£1,042.00 per month

£12,500.00 per annum

Basic Rate Tax is currently at 20% on annual earnings above Personal Allowance up to £37,500.

The Higher Tax Rate of 40% is applicable to all annual earnings above £37,501 up to £150,000.

Pension Threshold 2018 - 2019

£192.00 per week

£833 per month

£10,000 per annum

The above earnings trigger automatic enrolement. If staff members fall below these thresholds but wish to join a pension scheme, this must be offered to them.

National Minimum Wage 2018 - 2019

The National Minimum Wage and The National Living Wage increase every year in April.

As of 1st April 2019 the below hourly rates came into affect;

Age 25 and over £8.21

Age 21 to 24  - £7.70

Age 18-20 - £6.15

Under 18 - £4.35

Apprentices - £3.70

It is important to make sure you are paying your staff the correct minimum hourly rate for their age.

For more information, here is the direct link to the latest information on National Minimum Wage.

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What our clients say about us...

“Having recently moved to Stranton Business Centre from another accountants whom I was with for many frustrating years, I only wished I had done so earlier. The very warm and approachable staff go far beyond what is expected of them; where as many other accountants charge for the smallest of queries and advice, Stranton Business Centre bend over backwards to ensure peace of mind without any fee. There are not many accountants where you feel like they are there to save money for their clients instead of lining their own pockets with your money” – Anon

Important News

MTD - Making Tax Digital

What is MTD?

MTD makes it easier for individuals and businesses to get their tax right and keep on top of their affairs. It transforms tax administration so that it is more effective and efficient by holding all of your records in an electrical/digital format. These can be viewed on a computer, laptop or even your mobile phone.

If you run a VAT-registered business with a taxable turnover above the VAT registration threshold (£85,000), you are required to keep digital VAT business records and send returns using Making Tax Digital compatible software for VAT periods starting on, or after the 1st of April 2019. The records itself must include the date, amount and the category of each business transaction as a minimum.

HMRC's Government Gateway

HMRC's Government Gateway

HMRC’s Government Gateway makes it easier to find your personal information held by HMRC such as, your National Insurance number, your Income Tax estimate and you can even check your state pension. The process should only take 10 minutes and will be made easier if you have your National Insurance number and a valid UK Passport or a recent payslip available to prove your identity.

Follow the link below to register.

https://www.gov.uk/personal-tax-account/sign-in/create-account

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