As of 2nd July 2017 HMRC launched the new system of dynamic coding. This means that under the new system potential underpayments are replaced with in year adjustments (IYAs) Tax codes are adjusted in-year to reflect changes in an employee’s circumstances as soon as HMRC becomes aware of the change.
The table shows the tax rates you pay in each band if you have a standard Personal Allowance of £11,000.
||Up to £11,000
||£11,000 to £43,000
||£43,001 to £150,000
If you have provided any employees with any sort of benefit, don’t forget the deadline for submitting P11d’s. All the forms must be submitted to HM Revenue & Customs by 6 July.
The hourly National Minimum Wage rates update each April and apply for anyone who is of school leaving age. You need to be 25 or over to qualify for the National Living Wage.
If you are aged 19 or under, or are over 19 but in the first year of an apprenticeship, you will qualify for the apprentice rate (see table below):
Minimum wage rates 2020
The national minimum wage rates from 1st April 2020 are as follows:
||2020/2021 (Current Rate)
|25 and over
|21 to 25
Please remember the deadline to submit the following forms P9d and P11d’s must reach HMRC by 6th July. And if tthere is any class 1A NICs declared on form P11D must reach HMRC by 19th July.