© Nannytax 2017

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The Current Government Rates for the Tax Year 2017-18

 
Tax bracketsGross per weekDescription
Lower Earnings Limit £113 gross per week or less If you pay your employee the LEL or below, there is nothing due to HMRC and your employee will not be entitled to any state pensions or benefits.
Bracket between Lower Earnings Limit and NI Threshold Between £113-£157 gross per week If you pay your employee between these figures there is nothing due to HMRC, however you should still register so your employee will be entitled to state pension and benefits.
Employer's (Secondary) NI Threshold £157 gross per week or more If you pay your employee £157 or more you must register and pay Employer’s NI.
Employee's (Primary) NI Threshold £157 gross per week or more If you pay your employee £157 or more you must now deduct National Insurance on behalf of your employee, as well as pay Employer’s NI.
Tax Threshold Over £221 gross per week If you pay your employee £221 or more you must now also deduct tax on from your employee.
 

Tax and NI Payments

If your Tax and NI bill is below £1,500 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 £1,500 per month, you must pay HMRC every month.

 
Payment DeadlinesFinancial QuarterMonths Covered
19th Jan 4 Oct, Nov, Dec
19th April 1 Jan, Feb, Mar
19th July 2 April, May, Jun
19th Oct 3 Jul, Aug, Sep
 

National Minimum Wage (NMW)

*The National Minimum Wage (under 24) changes every October, the National Living Wage (25+) changes every April.

 
AgeGross per hour
Under 18 £4.05
Age 18-20 £5.60
Age 21-24 £7.05
Age 25+ £7.50 
Offset Allowance £44.80 per 7-day week
 

Redundancy Pay Entitlement

 
AgeDescription
Age 18-21 Half a week's pay or £244.50, whichever is lower
Age 22-40 One week's pay or £489, whichever is lower
Age 42-retirement One and half week's pay or £733.50, whichever is lower
Nannytax clients are advised to call our payroll team for further assistance on accurately calculating Redundancy Pay.
 

Statutory Maternity Pay (SMP)

 
AmountWhen?
90% of average gross weekly earnings First six weeks on SMP
£140.98 gross per week, or 90% of average weekly earnings, whichever is lower Remaining weeks up to a maximum of 33 weeks
 

Statutory Sick Pay (SSP)

 
AmountWhen?
£0 First 3 consecutive days of illness
£89.35 gross per week The fourth consecutive day of illness, up to 28 weeks
 

 Student Loan Recovery

 
PlanDescription
£341 gross per week (Plan 1) If your employee has a student loan and they are earning £17,775 gross per year (£1,481 gross per month, £341 gross per week) or more, student loan repayments must be deducted from their salary.
£403 gross per week (Plan 2) If your employee has a student loan and they are earning £21,000 gross per year (£1,750 gross per month, £403 gross per week) or more, student loan repayments must be deducted from their salary.
9% Student loan deductions