For full details of the latest tax rates and thresholds, visit www.gov.uk
Payroll Help
Contents : Show
Warning: Don't modify these rates and thresholds manually.
HMRC issues tables telling you how much tax to deduct from an employee’s pay based on items such as the pay period and year, the employee’s earnings and tax code, and so on. The application includes tables in which you specify all the necessary rates and thresholds relating to income tax, national insurance, and statutory payments.
For full details of the latest tax rates and thresholds, visit www.gov.uk
Two sets of tables are provided:
One set is intended to be used for current rates and thresholds
The other set for future rates and thresholds announced by the Chancellor of the Exchequer.
The application automatically determines which table to use according to the system date, whether the tax year matches the entry in the Current Tax Year box on the Payroll - Utilities - Set Options form, and the week or month number matches the one you enter when you use the Calculation command.
These tables are used to calculate the following:
Employees' income tax
Employees' and employer's national insurance contributions
Statutory Sick Pay (if the Full SSP Processing option is selected)
Statutory Maternity Pay (if the Full SMP Processing option is selected)
Statutory Paternity Pay for births (if the Full SPP (Birth) Processing option is selected)
Statutory Paternity Pay for adoption (if the Full SPP (Adopt) Processing option is selected)
Statutory Adoption Pay (if the Full SAP Processing option is selected)
Additional Shared Parental Pay
Statutory Parental Bereavement Pay
Statutory Neonatal Care Pay
Box |
Description |
|---|---|
Date Table Becomes Effective |
The date the table becomes effective. This is for reference purposes only. The tax year and period number for the payroll control whether the table is current or not. The table becomes current when its tax year matches the entry in the Current Tax Year box on the Payroll Options form, and the week or month number matches the one you enter when you use the Calculation command. |
Year Number for Table |
The tax year when the table becomes effective. The table becomes current when the entry in this box matches the entry in the Current Tax Year box on the Payroll Options form, and the week or month number matches the one you enter when you use the Calculation command. |
PAYE % Rate & Bandwidths |
The percentage rates of PAYE that correspond to the cumulative bandwidth. Up to 20 different rates can be entered. Take care to ensure these figures are correct. If in doubt contact your local tax office. |
First Week Number for Table |
The first week number when the table becomes effective. The be table becomes current when its tax year matches the entry in the Current Tax Year box on the Payroll Options form, and the entry in this box matches the current pay period. |
First Month Number for Table |
The first month number when the table becomes effective. The table becomes current when its tax year matches the entry in the Current Tax Year box on the Payroll Options form, and the entry in this box matches the current pay period. |
The employees qualifying pay must be above the annual threshold for Student loans and the repayment amount is then calculated by deducting this threshold from the qualifying pay before multiplying by the percentage specified in the % Rate box. Tip: For full details of student loan repayments, visit www.gov.uk/new-employee/student-loans.
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The employees qualifying pay must be above the annual threshold for Postgraduate Loans and the repayment amount is then calculated by deducting this threshold from the qualifying pay before multiplying by the percentage specified in the % Rate box. |
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Emergency Tax Code |
The default emergency tax code for the tax year. This is used when new employees are added to payroll for which a tax code is not otherwise provided. |
Base Rate |
The number that identifies which of the PAYE rates you have entered is the base rate. The base rate entered determines the calculation of tax contributions for employees who have a tax code of BR. |
Tax Regulatory Limit % |
The regulatory limit that is set by HMRC to put a cap on the amount of tax that can be deducted from an employee if he/she owes tax from previous months. The limit set means that an employee can be deducted no more than the equivalent of the set percentage of their gross pay. |
Box |
Description |
|---|---|
Weekly/Monthly and Annual Rates |
The weekly NI bandwidths as determined by HMRC. The monthly and annual bandwidths are calculated automatically based on the weekly bandwidths. Monthly and annual bandwidths may need to be amended. |
Employer |
The employer NI % rates according to the NI letter and bandwidth. |
LEL |
The number that identifies the band (row number) representing the Lower Earnings Limit. If an employee's pay is below the lower level, no NI contributions are payable by the employee or employer. This lower limit is also used for pension contribution calculations where no limit has been specified on the Payroll Options form or for individual employee records. |
Prev. LEL Val |
The value of the Lower Earnings Limit for the tax year before this tax year. This information is required by the application for certain calculations. When you begin using rates from table 2, the application sets this value automatically from the LEL in table 1. |
ST |
The number that identifies the band (row number) representing the Secondary Threshold which is the employers threshold for NI calculations. |
PT |
The number that identifies the band (row number) representing the Primary Threshold which is the employees threshold for NI calculations. |
FUST/IZUST |
The number that identifies the band (row number) representing the Freeport Upper Secondary Threshold and Investment Zone Upper Secondary Threshold. |
UEL/UST/AUST/VUST |
The number that identifies the band (row number) representing the Upper Earnings Limit, Upper Secondary Threshold, Apprentice Upper Secondary Threshold and Veteran's Upper Secondary Threshold. Tip: For full details of the abolition of employer NICs for apprentices under 25, visit www.gov.uk/government/publications/national-insurance-contributions-abolition-of-employer-contributions-for-apprentices-under-25. This upper limit can also be used to cap pension
contribution calculations where no limit has been specified in
the Employee UEL box on the employee
record, or in the UEL for Pension box
on the Payroll
- Utilities - Set
Options form. |
Apprenticeship Levy Annual Allowance & % |
The apprenticeship levy is calculated when the Payroll - P32 Processing form is opened after the pay bill is calculated as normal in the Payroll Calculation command. The levy is shown in the Appr. Levy column on the Payroll - P32 Processing form and is deducted from the total amount to be paid to HMRC. If you need to change the allowance amount being claimed for a company, tick the Override the Allowance box and then enter the new value in the adjacent box. This should be changed only at the start of a pay period, i.e. before any calculations have been run for the period. |
Employment Allowance |
2024/25 tax year Employment Allowance: Employers can reduce their secondary Class 1 National Insurance Contributions (NICs) by up to £5,000. Eligibility: Employers with a secondary Class 1 NICs liability of £100,000 or more in the wprior tax year are not eligible to claim the allowance. 2025/26 tax year and onwards Employment Allowance Increase: From 1 April 2025, the Employment Allowance will increase to £10,500. Eligibility Change: From 1 April 2025, the £100,000 eligibility threshold will be removed, meaning employers whose secondary Class 1 NICs liability was £100,000 or more in the prior tax year will be eligible to claim the allowance. These changes are designed to provide more support to employers, especially larger ones, by increasing the allowance and removing the previous eligibility cap. De-minimis State aid rules Prior to the 2025/26 tax year, extra checks were required to ascertain a company’s eligibility for the Employment Allowance as it advantages some businesses over others, which potentially could distort competition and Trade within the European Union. For the 2025/26 tax year, HMRC are responsible for ensuring compliance with the de-minimis state rules and advise that the State aid rules don’t apply option within the Employer Payment Summary is not selected. From the 2026/27 tax year onwards, the State aid rules options have been removed from the Employer Payment Summary. If you need to change the allowance amount being claimed for a company, tick the Override the Allowance box and then enter the new value in the adjacent box. This should be changed only at the start of a pay period, i.e. before any calculations have been run for the period. Tip: You should record the employment allowance you claim on the Payroll - P32 Processing - Employment Allowance form so you can monitor the amount claimed. The allowance claimed is displayed in the Emp. Allow. column on the P32 Processing form and is deducted from the outstanding amount to be paid to HMRC. |
Class 1A NICs % Rate |
The employer Class 1A NICs % rate, which is used for termination payments and sporting testimonials above the relevant threshold. The thresholds are recorded on the NI EE's page. |
Box |
Description |
|---|---|
Employee |
The employee NI % rates according to the NI letter and bandwidth. |
The termination payments threshold. From 6 April 2020, termination payments over a £30,000 threshold, which have not already incurred a Class 1 NICs liability, are subject to Class 1A Employers NICs. |
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The sporting testimonials threshold. From 6 April 2020, sporting testimonials over a £100,000 threshold, which have not already incurred a Class 1 NICs liability, are also be subject to Class 1A Employers NICs. |
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Veterans NIC relief duration |
This relief provides a zero-rate of secondary Class 1 National Insurance contributions (NICs) on the earnings of a qualifying veteran for 12 consecutive months from the first day of their first civilian employment after leaving the regular armed forces. This zero-rate can be applied up to the (new) Veteran’s Upper Secondary Threshold (VUST). This 12-month period is set and does not change if an employment ceases. This means that subsequent and concurring employers can claim this relief if they employ a veteran within the veteran’s qualifying period. Subsequent employers will need to determine the first day of the veteran’s first civilian employment and determine if the veteran is employed with their business during the qualifying period. |
Freeports NIC relief duration |
Eligibility to claim Freeport NIC Relief will expire 36 months from the employee’s start date of their employment. Employers will self-assess eligibility for the relief using available guidance from HMRC. In respect of off-payroll workers, the relief can be claimed by the liable secondary contributor for the eligible employee. This field is displayed when Freeports are set in use in Payroll Set Options. |
Investment Zone NIC relief duration |
Eligibility to claim Investment Zone NIC Relief will expire 36 months from the employee’s start date of their employment. Employers will self-assess eligibility for the relief using available guidance from HMRC. In respect of off-payroll workers, the relief can be claimed by the liable secondary contributor for the eligible employee. This field is displayed when Investment Zones are set in use in Payroll Set Options. |
Box |
Description |
|---|---|
Rate |
The SSP rate that corresponds to the SSP range. SSP rates and ranges are used by the application to calculate the employee's SSP daily rate based on the employee's earnings on which national insurance is deductible. |
Range |
The SSP range that corresponds to the SSP rate. SSP rates and ranges are used by the application to calculate the employee's SSP daily rate based on the employee's earnings on which national insurance is deductible. |
Waiting Days |
The number of qualifying days in a period of incapacity for work (PIW) during which SSP is not payable. These are called waiting days. If PIWs are linked there are no waiting days in the second (or later) spells of sickness. |
Days to make PIW |
The number of qualifying days that constitutes the start of a PIW. |
PIW Link Period Days |
The number of days that determines whether PIWs are linked, which is normally if the gap between them is 56 days or less. |
Maximum SSP Weeks |
The maximum number of weeks SSP entitlement. The application will warn you if you approach this limit when you reach the warning week number specified below. |
Warning Week No. |
See above. |
Max PIW Link Years |
The maximum number of years over which PIWs can be linked. |
Relevant Period |
The relevant period for SSP. Currently, for weekly-paid employees, the relevant period is the 8 weeks ending on the last payday before your employee went sick. |
Recovery Percentage |
The percentage of SSP which you may be entitled to recover under the Percentage Threshold Scheme. Unless you qualify under the Percentage Threshold Scheme you are not entitled to recover any of the SSP paid to your employees. |
Old SSP Rate 1 |
The SSP rate from the previous Table 1 figures. This allows for calculation of SSP where the date of absence is prior to the start date of the rate now stored in Table 1. |
Box |
Description |
|---|---|
Earnings Related % Rate |
The earnings related percentage rate of Statutory Maternity Pay (SMP). |
Standard Rate |
The standard rate of SMP. |
Max Wks for Earn Rel % Rate |
The number of weeks over which the earnings related percentage rate of SMP applies. |
Max Wks for Standard Amount |
The number of weeks over which the standard amount of SMP applies. |
Reclaim Percentage Regular |
The percentage of recovery of SMP you can reclaim if you are not entitled to the Small Employer's Relief (SER). |
NIC Compensation % Regular |
The percentage of National Insurance Contribution compensation you can claim if you are not entitled to the Small Employer's Relief (SER). |
Reclaim Percentage SER |
The percentage of recovery of SMP you can reclaim if you are entitled to the Small Employer's Relief (SER). |
NIC Compensation % SER |
The percentage of National Insurance Contribution compensation you can claim if you are entitled to the Small Employer's Relief (SER). |
Use Minimum Value |
Not used. |
Any Day MPP Start |
Rules introduced in April 2003 amended the definition of a week for cases where the MPP is triggered by an early birth (either before or after the start of the 11th week before the EWC) or by a pregnancy related illness in the last four weeks before the EWC. In both these circumstances the MPP will start with the day following the birth or the day after the first complete day of absence from work because of a pregnancy related illness in the four weeks before the EWC. For these cases a week will be defined as any period of seven days. |
The number of weeks during which SMP can be paid. |
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Weeks for Earliest MPP Start |
The number of weeks that determines the earliest week that the MPP can start. |
Weeks for Medical Evidence |
The number of weeks medical evidence can be accepted. You cannot accept medical evidence issued more than 20 weeks before the week the baby is expected. |
Qualifying Weeks |
The number of qualifying weeks that apply to SMP. The entitlement to SMP is based on calculating the employee's gross average weekly earnings over this number of qualifying weeks. |
Weeks for Continuous Employment |
The number of weeks of continuous employment that are required to determine an employee's entitlement to receive SMP. |
Pregnancy End Weeks |
The number of weeks prior to the expected week of confinement (EWC) at which SSP is payable if the pregnancy ends. |
Pregnancy Related Illness Weeks |
The number of weeks before the expected week of confinement (EWC) which is relevant if the employee is absent from work with a pregnancy-related illness. |
Employee Notification Days |
The number of days notification that must be given by the employee before she intends to start her maternity leave. |
Relevant Period |
The relevant period for SMP. This is currently a period of at least 8 weeks ending with the last normal pay day before the end of the employee's qualifying week and beginning with the day after the pay day that fell at least 8 weeks before that one. |
Box |
Description |
|---|---|
The earnings related percentage rate of Statutory Paternity Pay (SPP). |
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The standard rate of SPP. |
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The number of weeks during which SPP can be paid. SPP cannot be paid for any week in the Paternity Pay Period in which your employee does some work for you. |
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The time limit, in days, past which the employee cannot receive paternity pay. New rules apply from the 2024/25 tax year. Paternity
pay can now be received up to 52 weeks following birth or placement
of an adopted child. |
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Northern Ireland Time Limit Days |
The time limit, in days, past which the employee cannot receive paternity pay that fall under Northern Ireland legislation. |
Time Limit Weeks Loss of Child |
The number of weeks in which employees must take any Paternity Leave and Pay after the loss of a child or when the child ceases to live with the adopter. |
Pregnancy End Weeks |
The number of weeks prior to the expected week of confinement (EWC) at which SSP is payable if the pregnancy ends. |
The number of days notification that must be given by the employee before he intends to start his paternity leave. |
Box |
Description |
|---|---|
The earnings related percentage rate of Statutory Adoption Pay (SAP). |
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The standard rate of SAP. |
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The number of weeks during which SAP can be paid. |
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The number of weeks that determines the earliest date that the adoption pay period can start. |
Box |
Description |
|---|---|
The earnings related percentage rate of Shared Parental Pay (ShPP). |
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The standard rate of ShPP. |
Box |
Description |
|---|---|
The earnings related percentage rate of Statutory Parental Bereavement Pay (SPBP). |
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The standard rate of SPBP. |
Box |
Description |
|---|---|
The earnings related percentage rate of Statutory Neonatal Care Pay/Leave (SNCP). |
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The standard rate of SNCP. |