| | Legislations changes in the 2019/2020 tax year |
| Resolution |  NOTE: You can also view the legislation for the 2018/19 tax year.
Personal allowanceThe personal allowance for income tax increases from £11,850 to £12,500 for the 2019/2020 tax year. Tax code changesThe emergency tax increases from 1185L to 1250L from 6 April 2019 and: - L suffix codes increase by 65.
- M suffix codes increase by 71.
- N suffix codes increase by 59.
Tax bands and ratesRest of UKThe new bands are effective from 6 April 2019 for the UK. Bandwidth | From | To | Rest of UK Rate (%) | Basic Rate Band |
|---|
37,500.00 | 0.01 | 37,500.00 | 20.00 | Yes | 112,500.00 | 37,500.01 | 150,000.00 | 40.00 | No | excess | 150,000.01 | excess | 45.00 | No |
 EXAMPLE: The table below shows the UK Income Tax rates an employee pays in each band, if the employee has a standard Personal Allowance of £12,500.
| Band | Taxable income | UK tax rate (%) |
|---|
| Personal allowance | Up to £12,500 | 0% | | Basic rate | £12,501 to £50,000 | 20% | | Higher rate | £50,001 to £150,000 | 40% | | Additional rate | over £150,000 | 45% |
WalesThe new Welsh bands are introduced from 6 April 2019 and the Welsh Government has already proposed that the new rates should be set at 10p, meaning they'll equal the rates in England and Northern Ireland. ScotlandThe new Scottish bands are effective from 6 April 2019 for employees who live in Scotland. The Scottish taxpayer's tax code will be the same as the rest of the UK tax code, but is prefixed with an S. For example, S1250L. NI bands and ratesThe new earnings thresholds for category A (Standard Rate Contributions) are effective from 6 April 2019. Earnings Limit | Weekly | Monthly | Yearly |
|---|
| Lower Earnings Limit (LEL) | 118.00 | 512.00 | 6,136.00 | | Primary Threshold (PT) | 166.00 | 719.00 | 8,632.00 | | Secondary Threshold (ST) | 166.00 | 719.00 | 8,632.00 | | Upper Earnings Limit (UEL) | 962.00 | 4,167.00 | 50,000.00 | | Upper Secondary Threshold (UST) | 962.00 | 4,167.00 | 50,000.00 | | Apprentice Upper Secondary Threshold (AUST) | 962.00 | 4,167.00 | 50,000.00 |
You can find information for other NI categories, from our support guide. Read more > Statutory paymentsFrom 6 April 2019 the statutory sick pay (SSP) rate is £94.25 per week. The 2019/2020 rates for statutory maternity pay (SMP), statutory paternity pay (SPP), statutory paternity pay adoption (SPP(A)), shared parental pay (ShPP) and statutory adoption pay (SAP): Payment | Minimum weekly earnings £ | Higher rate % | The standard rate is the lesser of |
|---|
£ | % |
|---|
| SMP | 118.00 | 90.00 | 148.68 | 90.00 | | SPP, SPP(A) and ShPP | 118.00 | N/A | 148.68 | 90.00 | | SAP | 118.00 | 90.00 | 148.68 | 90.00 |
Employment allowanceThe employment allowance remains at £3,000 for the 2019/2020 tax year. From April 2020 the employment allowance is restricted to employers with an employer NI contributions bill of below £100,000 in their previous tax year. Student loansWhen you set up a student loan deduction for an employee, you must specify whether they're on Plan 1 or Plan 2. In the 2019/2020 tax year, the repayments are deducted based on the following thresholds: Type | Weekly £ | Monthly £ | Annual £ | Rate % |
|---|
| Plan Type 1 | 364.13 | 1,577.91 | 18,935.00 | 9.00 | | Plan Type 2 | 494.71 | 2,143.75 | 25,725.00 | 9.00 |
Postgraduate loansType | Weekly £ | Monthly £ | Annual £ | Rate % |
|---|
| Standard | 403.84 | 1,750.00 | 21,000.00 | 6.00 |
You can find further information about processing loans from our support guides: National minimum/living wageThe rates changes from 1 April 2019. | Workers aged | Rates from April 2018 | Rates from April 2019 |
|---|
| 25 years and over | £7.83 | £8.21 | | 21 to 24 years | £7.38 | £7.70 | | 18 to 20 years | £5.90 | £6.15 | | 16 - 17 years | £4.20 | £4.35 | | Apprentice | £3.70 | £3.90 |
To ensure you're using the correct legislation, you must install your payroll year end update before 1 April, you can find out how from our Payroll year end support centre For full details about the legislation, please visit the GOV.UK website. Automatic enrolment contributionsThe minimum contributions that you and your employees pay into your automatic enrolment pension scheme are increasing from 6 April 2019. Read more > Additional information required on payslipsNew legislation comes into force from April 2019 and requires all employers to show hours on employee payslips, where the pay varies by the amount of time worked. To help you understand this, we've listed some scenarios to show when you might need to show hours or not. Read more > [BCB:19:UK - Sales message :ECB] |
|