Current Tax and National Insurance Thresholds (2021-22)
|Lower Earnings Limit
||£120 gross per week or less
||If you pay your employee the LEL or below, there is nothing due to HMRC in respect of NI. This means the employee will not be contributing towards their NI record which can affect their eligibility to a state pension or benefits.
|Bracket between Lower Earnings Limit and NI Threshold
||Between £120-£170 gross per week
||If you pay your employee between these figures there is nothing due to HMRC in respect of NI.
|Employer's (Secondary) NI Threshold
||£170 gross per week or more
||If you pay your employee £170 or more and they are on a standard NI code, there will not be an Employee NI deduction, but Employer NI will be due.
|Employee's (Primary) NI Threshold
||£184 gross per week or more
||If you pay your employee £184 or more you must now deduct National Insurance on behalf of your employee, as well as pay Employer’s NI.
||Over £242 gross per week
||Based on the standard tax free allowance for this year of £12,570, if you pay your employee £242 or more you must now also deduct tax from your employee.
Please note, the thresholds differ slightly if you are based outside of England. For the current Government rates for Scotland and Wales, please visit Gov.uk.
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.
|If your monthly liability bill exceeds £1500 per month you must pay HMRC every month.
National Minimum Wage (NMW)
From 6 April 2021
||£4.62 per hour gross
||£6.56 per hour gross
||£8.36 per hour gross
||£8.91 per hour gross
||£58.52 per 7-day week
|Enable Payroll 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 £151.97 gross per week, or 90% of average gross weekly earnings, whichever is lower.
Statutory Sick Pay (SSP)
|£96.35 gross per week
||The first 3 consecutive days of illness are unpaid as SSP starts on the fourth consecutive day of illness and can be paid for 28 weeks.
Student Loan Recovery
|Enable Payroll clients are advised to call our offices for further assistance on accurately calculating Student Loan Recovery payments.
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