PAYE Tax Year changes 2019-20 | Expert Payroll Services

PAYE Tax Year changes 2019-20

PAYE-Tax-Year-Changes

Here is a brief summary of 2019-20 PAYE changes. The main topics we will be covering in this blog are as follows:

  • Income Tax
  • National Insurance
  • Expenses and benefits
  • Statutory Payments
  • National Living Wage and Minimum Wage
  • Postgraduate Loan

Income Tax:

The new personal allowance for tax year is £12,500 per annum which equates to a tax code of 1250L

All the L codes will increase by 65, M by 71 and N by 59. All the rates and percentages are detailed here:

https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2019-to-2020

From April 2019, there will be Welsh income tax. The tax codes will be prefixed by a “C”. The rates of income tax paid by Welsh employees in 2019-20 will be the same as English and NI employees.

Scottish rates are different to the rest of the UK and the new rates are as follows:

Scotland

PAYE tax rates and thresholds 2019 to 2020
Employee personal allowance £240 per week
£1,042 per month
£12,500 per year
Scottish starter tax rate 19% on annual earnings above the PAYE tax threshold and up to £2,049
Scottish basic tax rate 20% on annual earnings from £2,050 to £12,444
Scottish intermediate tax rate 21% on annual earnings from £12,445 to £30,930
Scottish higher tax rate 41% on annual earnings from £30,931 to £150,000
Scottish top tax rate 46% on annual earnings above £150,000

Tax codes to use from 6th of April 2019 are detailed here:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/783517/P9X_2019_.pdf

National Insurance:

Class 1 National Insurance is now set as follows:

PAYE-Tax-Year-changes-2019-20

You will find all the relevant information about this subject on gov.uk website https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2019-to-2020 

Expenses and benefits for employees:

Benefits charges for vehicles

Car Fuel Benefits Charge is £ 24,100

Van Benefits Charge is £ 3,430

Van Fuel Benefits Charge is £ 655 

Advisory fuel rates are as follows: 

Advisory-fuel-rates

 

Advisory-fuel-rates-uk

 Payrolling of benefits in Kind:

All benefits and expenses can be payrolled apart from Living, accommodation and Loans.

To payroll these benefits employers have to register on or before the 5th of April.

Few useful links below:

https://www.gov.uk/government/publications/advisory-fuel-rates

https://www.gov.uk/government/publications/van-and-fuel-benefit-charges-for-cars-and-vans-from-6-april-2019

https://www.gov.uk/expenses-and-benefits-electric-company-cars

Register to payroll benefits – https://www.gov.uk/guidance/paying-your-employees-expenses-and-benefits-through-your-payroll

National Living and minimum wage:

National-Living-and-minimum-wage

https://www.gov.uk/national-minimum-wage-rates

Statutory Payment:

SSP increases to 94.25 per week

SMP, SPP, SAP increases to 148.68 per week

Shared Parental Pay increases to 148.68 per week

Postgraduate Loan:

Postgraduate loan deduction will come into force from April 2019. This is also added to the new starter check list which can be downloaded from the below link

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/783186/Starter_checklist_for_2019_to_2020.pdf

You can also find more details on this on our blog post: https://www.expertpayrollservices.co.uk/blog/student-finance-loans/