Rates and thresholds for employers 2014-15

The tables below show the rates and thresholds that apply when you operate your payroll or provide expenses and benefits to your employees. Unless otherwise stated, the figures quoted apply between 6 April 2014 and 5 April 2015.

If you need rates and thresholds for the tax year 2013-14 there's a link at the end of this page.

On this page:

PAYE tax and Class 1 NICs

Tax thresholds, rates and codes

PAYE tax rates, thresholds and codes

Figures to use 2014-15

PAYE tax threshold

£192 per week
£833 per month
£10,000 per year

Basic tax rate

20% on annual earnings above the PAYE tax threshold and up to £31,865

Higher tax rate

40% on annual earnings from £31,866 to £150,000

Additional tax rate

45% on annual earnings above £150,000

Emergency tax code

1000L

Understanding employee tax codes

Class 1 NICs: thresholds

Class 1 NICs thresholds

Figures to use 2014-15

Lower earnings limit (LEL)

£111 per week
£481 per month
£5,772 per year

Primary Threshold (PT)

£153 per week
£663 per month
£7,956 per year

Secondary Threshold (ST)

£153 per week
£663 per month
£7,956 per year

Upper accrual point (UAP)

£770 per week
£3,337 per month
£40,040 per year

Upper earnings limit (UEL)

£805 per week
£3,489 per month
£41,865 per year

Class 1 NICs: rates for employee (primary) contributions

NICs deductions should not be made on earnings below the Lower Earnings Limit (LEL).

NICs category letter

Earnings at or above LEL up to and including PT

Earnings above the PT up to and including UAP

Earnings above UAP up to and including UEL

Balance of earnings above UEL

A

0%

12%

12%

2%

B

0%

5.85%

5.85%

2%

C

NIL

NIL

NIL

NIL

D

0%

10.60%

12%

2%

E

0%

5.85%

5.85%

2%

J

0%

2%

2%

2%

L

0%

2%

2%

2%

NICs category letter

NICs rebate on earnings above LEL, up to and including PT

A

N/A

B

N/A

C

N/A

D

1.40%

E

NIL

J

N/A

L

1.40%

National Insurance for employers: the basics

Class 1 NICs: rates for employer (secondary) contributions

NICs deductions should not be made on earnings below the Lower Earnings Limit (LEL).

NICs category letter

Earnings at or above LEL up to and including ST

Earnings above ST up to and including UAP

Earnings above UAP up to and including UEL

Balance of earnings above UEL

NICs rebate on earnings above LEL, up to and including ST

A

0%

13.80%

13.80%

13.80%

N/A

B

0%

13.80%

13.80%

13.80%

N/A

C

0%

13.80%

13.80%

13.80%

N/A

D

0%

10.40%

13.80%

13.80%

3.40%

E

0%

10.40%

13.80%

13.80%

3.40%

J

0%

13.80%

13.80%

13.80%

N/A

L

0%

10.40%

13.80%

13.80%

3.40%

National Insurance for employers: the basics

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National minimum wage

The rates below apply from 1 October 2013 and are likely to change again on 1 October 2014.

Category of worker Hourly rate from 1 Oct 2013
Aged 21 and above
£6.31
Aged 18 to 20 inclusive
£5.03
Aged under 18 (but above compulsory school leaving age) £3.72
Apprentices aged under 19 £2.68
Apprentices aged 19 and over, but in the first year of their apprenticeship £2.68

The national minimum wage

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Statutory maternity, paternity and adoption pay

Type of payment or recovery Figures to use 2014-15
Statutory Maternity Pay (SMP) - weekly rate for first six weeks 90% of the employee's average weekly earnings
Statutory Maternity Pay (SMP) - weekly rate for remaining weeks
£138.18 or 90% of the employee's average weekly earnings, whichever is lower
Ordinary Statutory Paternity Pay (OSPP) and Additional Statutory Paternity Pay (ASPP) - weekly rate
£138.18 or 90% of the employee's average weekly earnings, whichever is lower
Statutory Adoption Pay (SAP) - weekly rate £138.18 or 90% of the employee's average weekly earnings, whichever is lower
SMP/OSPP/ASPP/SAP - proportion of your payments you can recover from HMRC

92% if your total Class 1 NICs (both employee and employer contributions) are above £45,000 for the previous tax year

103% if your total Class 1 NICs for the previous tax year are £45,000 or lower

Maternity, paternity, adoption, sickness

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Statutory sick pay

The same weekly Statutory Sick Pay rate applies to all employees. However, the amount you must actually pay an employee for each day they're off work due to illness (the daily rate) depends on the number of 'qualifying days' they work each week.

Statutory Sick Pay (SSP) 2014-15 Rate of payment or recovery Unrounded daily rates (for use with payroll software)
Standard weekly rate

£87.55 N/A
Daily rate - employees with one qualifying day in the week
£87.55 £87.5500
Daily rate - employees with two qualifying days in the week

£43.78 £43.7750
Daily rate - employees with three qualifying days in the week
£29.19 £29.1833
Daily rate - employees with four qualifying days in the week
£21.89 £21.8875
Daily rate - employees with five qualifying days in the week
£17.51 £17.5100
Daily rate - employees with six qualifying days in the week
£14.60 £14.5916
Daily rate - employees with seven qualifying days in the week

£12.51 £12.5071
Proportion of your SSP payments you can recover from HMRC

From 6 April 2014 the recovery of SSP was abolished. You cannot therefore recover any SSP for any tax years from 2014-2015.

For a limited period you will still be able to recover SSP for previous tax years up to 5 April 2014.

You can make this late recovery up to 5 April 2016. From 6 April 2016 you will not be able to recover SSP for any tax year.

Where you are able to make recovery, you can recover amounts in excess of 13% of your total employee and employer Class 1 NICs liability for the month in question.

N/A

Maternity, paternity, adoption, sickness

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Student loan recovery

Rate or threshold Figures to use 2014-15
Employee earnings threshold at which repayment of student loans begin £16,910 per year
£1,409.16 per month
£325.19 per week
Rate of student loan deductions 9%

Employee has a student loan

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Class 1A NICs: expenses and benefits

NICs class Rate 2014-15
Class 1A NICs
13.8% - for benefits provided in 2014-15

Find out more about expenses and benefits

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Company cars: advisory fuel rates

The rates below apply from 1 March 2014.

Engine size
Petrol LPG
1400cc or smaller
14p 9p
1401cc to 2000cc
16p 11p
Bigger than 2000cc
24p 17p
Engine size
Diesel
1600cc or smaller
12p
1601cc to 2000cc
14p
Bigger than 2000cc
17p

Find out more about advisory fuel rates for company cars

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Employee vehicles: mileage payments for business travel

Type of vehicle Rate per business mile 2014-15
Car For tax purposes: 45p for the first 10,000 business miles in a tax year, then 25p for each subsequent mile

For NICs purposes: 45p for all business miles

Motorcycle 24p for both tax and NICs purposes and for all business miles
Cycle 20p for both tax and NICs purposes and for all business miles

Mileage expenses for business travel in employee's own vehicles

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Class 1B NICs: PAYE Settlement Agreements

NICs class Rate 2014-15
Class 1B NICs 13.8% - for benefits provided in 2014-15

PSAs

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2013-14 rates and thresholds

If you still need rates and thresholds relating to the 2013-14 tax year, you can visit this archive page.

Rates and thresholds for employers 2013-14

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