2015/16 (different rates and allowances apply for earlier years)
PAYE tax and Class 1 National Insurance contributionsYou normally operate PAYE as part of your payroll so HM Revenue and Customs (HMRC) can collect Income Tax and National Insurance from your employees.
Your payroll software will calculate how much tax and National Insurance (NI) to deduct from your employees’ pay.
Tax thresholds, rates and codesThe amount of Income Tax you deduct from your employees depends on their tax codeand how much of their taxable income is above their Personal Allowance.
PAYE tax rates, thresholds and codes 2015 to 2016
Employee personal allowance
£204 per week
£883 per month
£10,600 per year
Basic tax rate 20% on annual earnings above the PAYE tax threshold and up to £31,785
Higher tax rate 40% on annual earnings from £31,786 to £150,000
Additional tax rate 45% on annual earnings above £150,000
Emergency tax codes1060L W1, 1060L M1 or 1060L XClass 1 National Insurance thresholdsYou can only make National Insurance (NI) deductions on earnings above the Lower Earnings Limit (LEL).
Class 1 NI thresholds 2015 to 2016
Lower Earnings Limit (LEL)
£112 per week
£486 per month
£5,824 per year
Primary Threshold (PT)
£155 per week
£672 per month
£8,060 per year
Secondary Threshold (ST)
£156 per week
£676 per month
£8,112 per year
Upper Accrual Point (UAP)
£770 per week
£3,337 per month
£40,040 per year
Upper Secondary Threshold (under 21) (UST)
£815 per week
£3,532 per month
£42,385 per year
Upper Earnings Limit (UEL)
£815 per week
£3,532 per month
£42,385 per yearClass 1 National Insurance ratesEmployee (primary) contribution ratesDeduct primary contributions (employee’s National Insurance) from your employees’ pay through PAYE.
NI 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 ; 1.4% rebate ; 10.60% ; 12% ; 2%
E ; 0% ; 5.85% ; 5.85% ; 2%
I (under 21) ; 1.4% rebate ; 10.60% ; 12% ; 2%
J ; 0% ; 2% ; 2% ; 2%
K (under 21 - deferment) ; 1.4% rebate ; 2% ; 2% ; 2%
L ; 1.4% rebate ; 2% ; 2% ; 2%
M (under 21) ; 0% ; 12% ; 12% ; 2%
Z (under 21 - deferment) ; 0% ; 2% ; 2% ; 2%Employer (secondary) contribution ratesYou pay secondary contributions (employer’s National Insurance) to HMRC as part of your PAYE bill.
Pay employers’ PAYE tax and National Insurance.
NI category letter ; Earnings at or above LEL up to and includingST ; Earnings above ST up to and including UAP ; Earnings above UAP up to and including UEL/UST ; Balance of earnings above UEL/UST ; NICs rebate on earnings above LEL, up to and including ST ; NICs rebate on earnings above ST, up to and including UAP
A ; 0% ; 13.80% ; 13.80% ; 13.80% ; N/A ; N/A
B ; 0% ; 13.80% ; 13.80% ; 13.80% ; N/A ; N/A
C ; 0% ; 13.80% ; 13.80% ; 13.80% ; N/A ; N/A
D ; 0% ; 10.40% ; 13.80% ; 13.80% ; 3.40% ; NIL
E ; 0% ; 10.40% ; 13.80% ; 13.80% ; 3.40% ; NIL
I (under 21) ; 0% ; 0% ; 0% ; 13.80% ; 3.40% ; 3.40%
J ; 0% ; 13.80% ; 13.80% ; 13.80% ; N/A ; N/A
K (under 21 - deferment) ; 0% ; 0% ; 0% ; 13.80% ; 3.40% ; 3.40%
L ; 0% ; 10.40% ; 13.80% ; 13.80% ; 3.40% ; NIL
M (under 21) ; 0% ; 0% ; 0% ; 13.80% ; N/A ; N/A
Z (under 21 - deferment) ; 0% ; 0% ; 0% ; 13.80% ; N/A ; N/AClass 1A National Insurance: expenses and benefitsYou must pay Class 1A National Insurance on work benefits you give to your employees, eg a company mobile phone. You report and pay Class 1A at the end of each tax year.
NI class 2015 to 2016 rate
Class 1A 13.8%Pay employers’ Class 1A National Insurance.
Class 1B National Insurance: PAYE Settlement Agreements (PSAs)You pay Class 1B National Insurance if you have a PSA. This allows you to make one annual payment to cover all the tax and National Insurance due on small or irregular taxable expenses or benefits for your employees.
NI class 2015 to 2016 rate
Class 1B 13.8%Pay Class 1B National Insurance.
Statutory maternity, paternity and adoption payUse the maternity and paternity calculator for employers to calculate your employee’sSMP, paternity or adoption pay, their qualifying week, average weekly earnings and leave period.
Type of payment or recovery 2015 to 2016 rate
Statutory maternity pay (SMP) - weekly rate for first six weeks 90% of the employee’s average weekly earnings
SMP - weekly rate for remaining weeks £139.58 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 £139.58 or 90% of the employee’s average weekly earnings, whichever is lower
Statutory adoption pay (SAP) - weekly rate £139.58 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 NI (both employee and employer contributions) is above £45,000 for the previous tax year
103% if your total Class 1 NI for the previous tax year is £45,000 or lowerStatutory Sick Pay (SSP)The same weekly SSP 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’ (QDs) they work each week.
Use the SSP calculator to work out your employee’s sick pay, or use the rates below.
Unrounded daily rates ; Number of QDs in week ; 1 day to pay ; 2 days to pay ; 3 days to pay ; 4 days ; 5 days ; 6 days ; 7 days to pay£12.6357 ; 7days ; £12.64 ; £25.28 ; £37.91 ; £50.55 ; £63.18 ; £75.82 ; £88.45
£14.7416 ; 6days ; £14.75 ; £29.49 ; £44.23 ; £58.97 ; £73.71 ; £88.45
£17.6900 ; 5days ; £17.69 ; £35.38 ; £53.07 ; £70.76 ; £88.45
£22.1125 ; 4days ; £22.12 ; £44.23 ; £66.34 ; £88.45
£29.4833 ; 3days ; £29.49 ; £58.97 ; £88.45
£44.2250 ; 2days ; £44.23 ; £88.45
£88.4500 ; 1day ; £88.45 Student loan recoveryIf your employees’ earnings are above the earnings threshold, record their student loan deductions in your payroll software. It will automatically calculate and deduct repayments from their pay.
Rate or threshold : 2015 to 2016 rate
Employee earnings threshold : £17,335 per year ; £1,444 per month ; £333 per week
Student loan deductions : 9%Company cars: Advisory Fuel Rates (AFRs)Use AFRs to work out mileage costs if you provide company cars to your employees.
The rates below apply from 1 December 2015.
Engine size ; Petrol - amount per mile ; LPG - amount per mile
1400cc or less ; 11 pence ; 7 pence
1401cc to 2000cc ; 13 pence ; 9 pence
Over 2000cc ; 20 pence ; 13 pence
Engine size ; Diesel - amount per mile
1600cc or less : 9 pence
1601cc to 2000cc : 11 pence
Over 2000cc : 13 penceHybrid cars are treated as either petrol or diesel cars for this purpose.
Employee vehicles: Mileage Allowance Payments (MAPs)MAPs are what you pay your employees for using their own vehicle for business journeys.
You can pay your employees an ‘approved amount’ of MAPs each year without having to report them to HMRC. To work out the ‘approved amount’, multiply your employee’s business travel miles for the year by the rate per mile for their vehicle.
Find out more about reporting and paying MAPs.
Type of vehicle Rate per business mile 2015 to 2016
Car:
For tax purposes: 45 pence for the first 10,000 business miles in a tax year, then 25 pence for each subsequent mile
For NI purposes: 45 pence for all business miles
Motorcycle : 24 pence for both tax and NI purposes and for all business miles
Cycle :20 pence for both tax and NI purposes and for all business miles
PAYE tax and Class 1 National Insurance contributionsYou normally operate PAYE as part of your payroll so HM Revenue and Customs (HMRC) can collect Income Tax and National Insurance from your employees.
Your payroll software will calculate how much tax and National Insurance (NI) to deduct from your employees’ pay.
Tax thresholds, rates and codesThe amount of Income Tax you deduct from your employees depends on their tax codeand how much of their taxable income is above their Personal Allowance.
PAYE tax rates, thresholds and codes 2015 to 2016
Employee personal allowance
£204 per week
£883 per month
£10,600 per year
Basic tax rate 20% on annual earnings above the PAYE tax threshold and up to £31,785
Higher tax rate 40% on annual earnings from £31,786 to £150,000
Additional tax rate 45% on annual earnings above £150,000
Emergency tax codes1060L W1, 1060L M1 or 1060L XClass 1 National Insurance thresholdsYou can only make National Insurance (NI) deductions on earnings above the Lower Earnings Limit (LEL).
Class 1 NI thresholds 2015 to 2016
Lower Earnings Limit (LEL)
£112 per week
£486 per month
£5,824 per year
Primary Threshold (PT)
£155 per week
£672 per month
£8,060 per year
Secondary Threshold (ST)
£156 per week
£676 per month
£8,112 per year
Upper Accrual Point (UAP)
£770 per week
£3,337 per month
£40,040 per year
Upper Secondary Threshold (under 21) (UST)
£815 per week
£3,532 per month
£42,385 per year
Upper Earnings Limit (UEL)
£815 per week
£3,532 per month
£42,385 per yearClass 1 National Insurance ratesEmployee (primary) contribution ratesDeduct primary contributions (employee’s National Insurance) from your employees’ pay through PAYE.
NI 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 ; 1.4% rebate ; 10.60% ; 12% ; 2%
E ; 0% ; 5.85% ; 5.85% ; 2%
I (under 21) ; 1.4% rebate ; 10.60% ; 12% ; 2%
J ; 0% ; 2% ; 2% ; 2%
K (under 21 - deferment) ; 1.4% rebate ; 2% ; 2% ; 2%
L ; 1.4% rebate ; 2% ; 2% ; 2%
M (under 21) ; 0% ; 12% ; 12% ; 2%
Z (under 21 - deferment) ; 0% ; 2% ; 2% ; 2%Employer (secondary) contribution ratesYou pay secondary contributions (employer’s National Insurance) to HMRC as part of your PAYE bill.
Pay employers’ PAYE tax and National Insurance.
NI category letter ; Earnings at or above LEL up to and includingST ; Earnings above ST up to and including UAP ; Earnings above UAP up to and including UEL/UST ; Balance of earnings above UEL/UST ; NICs rebate on earnings above LEL, up to and including ST ; NICs rebate on earnings above ST, up to and including UAP
A ; 0% ; 13.80% ; 13.80% ; 13.80% ; N/A ; N/A
B ; 0% ; 13.80% ; 13.80% ; 13.80% ; N/A ; N/A
C ; 0% ; 13.80% ; 13.80% ; 13.80% ; N/A ; N/A
D ; 0% ; 10.40% ; 13.80% ; 13.80% ; 3.40% ; NIL
E ; 0% ; 10.40% ; 13.80% ; 13.80% ; 3.40% ; NIL
I (under 21) ; 0% ; 0% ; 0% ; 13.80% ; 3.40% ; 3.40%
J ; 0% ; 13.80% ; 13.80% ; 13.80% ; N/A ; N/A
K (under 21 - deferment) ; 0% ; 0% ; 0% ; 13.80% ; 3.40% ; 3.40%
L ; 0% ; 10.40% ; 13.80% ; 13.80% ; 3.40% ; NIL
M (under 21) ; 0% ; 0% ; 0% ; 13.80% ; N/A ; N/A
Z (under 21 - deferment) ; 0% ; 0% ; 0% ; 13.80% ; N/A ; N/AClass 1A National Insurance: expenses and benefitsYou must pay Class 1A National Insurance on work benefits you give to your employees, eg a company mobile phone. You report and pay Class 1A at the end of each tax year.
NI class 2015 to 2016 rate
Class 1A 13.8%Pay employers’ Class 1A National Insurance.
Class 1B National Insurance: PAYE Settlement Agreements (PSAs)You pay Class 1B National Insurance if you have a PSA. This allows you to make one annual payment to cover all the tax and National Insurance due on small or irregular taxable expenses or benefits for your employees.
NI class 2015 to 2016 rate
Class 1B 13.8%Pay Class 1B National Insurance.
Statutory maternity, paternity and adoption payUse the maternity and paternity calculator for employers to calculate your employee’sSMP, paternity or adoption pay, their qualifying week, average weekly earnings and leave period.
Type of payment or recovery 2015 to 2016 rate
Statutory maternity pay (SMP) - weekly rate for first six weeks 90% of the employee’s average weekly earnings
SMP - weekly rate for remaining weeks £139.58 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 £139.58 or 90% of the employee’s average weekly earnings, whichever is lower
Statutory adoption pay (SAP) - weekly rate £139.58 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 NI (both employee and employer contributions) is above £45,000 for the previous tax year
103% if your total Class 1 NI for the previous tax year is £45,000 or lowerStatutory Sick Pay (SSP)The same weekly SSP 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’ (QDs) they work each week.
Use the SSP calculator to work out your employee’s sick pay, or use the rates below.
Unrounded daily rates ; Number of QDs in week ; 1 day to pay ; 2 days to pay ; 3 days to pay ; 4 days ; 5 days ; 6 days ; 7 days to pay£12.6357 ; 7days ; £12.64 ; £25.28 ; £37.91 ; £50.55 ; £63.18 ; £75.82 ; £88.45
£14.7416 ; 6days ; £14.75 ; £29.49 ; £44.23 ; £58.97 ; £73.71 ; £88.45
£17.6900 ; 5days ; £17.69 ; £35.38 ; £53.07 ; £70.76 ; £88.45
£22.1125 ; 4days ; £22.12 ; £44.23 ; £66.34 ; £88.45
£29.4833 ; 3days ; £29.49 ; £58.97 ; £88.45
£44.2250 ; 2days ; £44.23 ; £88.45
£88.4500 ; 1day ; £88.45 Student loan recoveryIf your employees’ earnings are above the earnings threshold, record their student loan deductions in your payroll software. It will automatically calculate and deduct repayments from their pay.
Rate or threshold : 2015 to 2016 rate
Employee earnings threshold : £17,335 per year ; £1,444 per month ; £333 per week
Student loan deductions : 9%Company cars: Advisory Fuel Rates (AFRs)Use AFRs to work out mileage costs if you provide company cars to your employees.
The rates below apply from 1 December 2015.
Engine size ; Petrol - amount per mile ; LPG - amount per mile
1400cc or less ; 11 pence ; 7 pence
1401cc to 2000cc ; 13 pence ; 9 pence
Over 2000cc ; 20 pence ; 13 pence
Engine size ; Diesel - amount per mile
1600cc or less : 9 pence
1601cc to 2000cc : 11 pence
Over 2000cc : 13 penceHybrid cars are treated as either petrol or diesel cars for this purpose.
Employee vehicles: Mileage Allowance Payments (MAPs)MAPs are what you pay your employees for using their own vehicle for business journeys.
You can pay your employees an ‘approved amount’ of MAPs each year without having to report them to HMRC. To work out the ‘approved amount’, multiply your employee’s business travel miles for the year by the rate per mile for their vehicle.
Find out more about reporting and paying MAPs.
Type of vehicle Rate per business mile 2015 to 2016
Car:
For tax purposes: 45 pence for the first 10,000 business miles in a tax year, then 25 pence for each subsequent mile
For NI purposes: 45 pence for all business miles
Motorcycle : 24 pence for both tax and NI purposes and for all business miles
Cycle :20 pence for both tax and NI purposes and for all business miles
