Payroll & Auto-enrolment Increase 2018/2019

National Living Wage and The National Minimum Wage

April 2018 will see an increase in the National Living Wage and The National Minimum Wage we will automatically uplift employee hourly rates to the new National Living Wage and National Minimum Wage rates as per the below table.

Year25 & Over21 – 2418 – 20Under 18 Apprentice
2018 £7.83£7.38£5.90£4.20£3.70
2017£7.50£7.05£5.60 £4.05£3.50
2016 £7.20£6.95£5.55£4.00 £3.40

Tax Rates and thresholds for employers: 2018 to 2019

The amount of Income Tax you deduct from your employees depends on their tax code and how much of their taxable income is above their Personal Allowance.

PAYE tax rates and thresholds2018 to 2019
Employee personal allowance £228 per week
£988 per month
£11,850 per year
UK basic tax rate20% on annual earnings above the PAYE tax threshold & up to £34,500
UK higher tax rate 40% on annual earnings from £34,501 to £150,000
UK additional tax rate 45% on annual earnings above £150,000


Employee and employer Auto Enrolment Pension minimum contributions rates will increase  from 6th April 2018.

What are the minimum auto enrolment contribution rates?

The auto enrolment minimum is initially 2% of which at least 1% must be paid by the employer. In April 2018, this increases to 5% of qualifying earnings of which at least 2% must be paid by the employer. In April 2019 this rises again to  of 8% qualifying earnings  of which at least 3% must be paid by the employer.

These contributions are set on earnings over £113 per week up to an upper limit of £866 per week.  You have the flexibility to pay contributions at a rate that suits your business objectives, subject to these being at least equal to the minimum requirements above.

DateEmployer minimum contribution
Employee minimum contribution Total minimum contribution
Before April 5 2018
April 6 2018 – April 5 2019
April 6 2019 onwards

For more information on this or to arrange a free initial consultation please call us on 0151 608 5702 or get in touch with us here.

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