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1014. Tax year 2019-20 changes?
 
HMRC's new tax year starts only on 6th April of every year. However the option to start the new tax year in our service is available after 31st March. Our system will be automatically updated and fully compliant with the legislative changes from the start of the new tax year.

When moving to new tax year 2019-20, please take a note of the following changes below :-

1) Global Tax Code uplifted to 1250L
2) Income Tax Rates and Bandwidth
3) Auto Enrolment Minimum Contribution Rates
4) Statutory Payment Rates
5) Student Loan Rates
6) Postgraduate Loan Deductions
7) Company Car Fuel Rates.
8) National Minimum Wage
9) National Insurance contributions.

1) Global Tax Code uplifted to 1250L

Employee Personal allowance increased from £11,850 to £12,500 for the tax year 2019-20. HMRC have announced a general 'uplift' of all tax codes with 'L' suffix by 65. The employee with tax code 1185L in 2018-19 will have their tax code uplifted to 1250L from 6 April 2019.

Tax Codes(UK)
Emergency Tax Code 1250L
L Suffix Uplift 65
M Suffix Uplift 71
N Suffix Uplift 59

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2) Income Tax Rates and Bandwidth

Personal allowance increased from £11,850 to £12,500 for the tax year 2019-20. The new threshold for PAYE is £240 per week (£1,042 per month). Below are the income tax rates and bandwidth for UK and Scotland that will come into effect from 6th April 2019.

UK Rate of Income Tax:
Table below shows the changes to UK rate of income tax bandwidths from 6 April 2019.

UK Rate % Bandwidth
Basic Rate 20% 1 to 37,500
Higher Rate 40% 37,501 to 150,000
Additional Rate 45% 150,001 and above

Scottish Rate of Income Tax:
Table below shows the changes to Scottish rate of income tax bandwidths from 6 April 2018.

Scottish Rate % Bandwidth
Starter Rate 19% 1 to 2,049
Basic Rate 20% 2,050 to 12,444
Intermediate Rate 21% 12,445 to 30,930
Higher Rate 41% 30,931 to 150,000
Top Rate 46% 150,001 and above

Welsh Rate of Income Tax:
From 6 April 2019 onward, HMRC is intoducing new Welsh rate of Income tax. The Welsh tax payers will be subjected to pay tax based on the new Welsh bandwidths. Our system will be automatically updated with the new income tax band changes from the start of the new tax year. Table below shows the changes to Welsh rate of income tax bandwidths from 6 April 2019.

Welish Rate % Bandwidth
Basic Rate 20% £1 to £37,500
Higher Rate 40% £37,501 to £150,000
Additional Rate 45% £150,001 and above

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3) Auto Enrolment Mininmum Contribution Rates

From 6th April 2019, the minimum contribution rates for auto enrolment pension will increase. Our system will automatically update the minimum percentage contribution rates to meet the new increased rates for both employee and employer from the day(6th April 2019) the new rates become effective

Date
Employer Minimum contribution
Employee Minimum contribution
Total Minimum contribution
New rate: 6th April 2019 onwards
3%
5%
8%
Current rate: 6th April 2018 - 5th April 2019
2%
3%
5%

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4) Statutory Payment Rates

The Small Employer's Relief threshold (£45,000) and recovery rate (3%) remain unchanged for 2019-20, as does the standard recovery rate (92%).

Statutory payment rate (weekly) for the tax year 2019 are shown in the table below.

Statutory Sick Pay(Weekly)
£94.25
Statutory Maternity Pay (Weekly) £148.68
Statutory Paternity Pay (Weekly) £148.68
Statutory Adoption Pay (Weekly) £148.68
Statutory Shared Parental Pay(Weekly) £148.68

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5) Student Loan Rates

From 6 April 2018 onward student loan threshold for

1. Plan 1 will increase from £ 18,330 to £18,935 per year
2. Plan 2 will increase from £25,000 to £25,725 per year

Only thresholds are different for both the plans but the calculation method and deduction rate(9%) remains the same.

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6) Post graduate loan deductions

The post graduate loan deduction is the new feature in the Payroll process from april 2019. Employee earnings threshold for Postgraduate loan £21,000 per year and the Postgraduate loan deduction rate is 6%. You will be notified through the DPS about updates from HMRC regularly.

Click here for more information on post graduate loan.

For more information click on the link faq: 4802

7) Company cars fuel rates

This is important for employers registered to use the payrolling service where car and car fuel benefits are made available to an employee.

The rates below apply from 1 March 2019.

Engine Size
Petrol-amount per mile
LPG-amount per mile
1400cc or less
11 pence
7 pence
1401cc to 20000cc
14 pence
8 pence
Over 2000cc
21 pence
13 pence

 

Engine Size
Diesel-amount per mile
1600cc or less
10 pence
1601cc to 2000cc
11 pence
Over 2000cc
3 pence

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8) National Minimum Wage Rates Changes

The national minimum wage rate from 1st April 2019 are shown in the below table.

Category of worker
Hourly rate
Aged 25 and above (national living wage rate)
£8.21
Aged 21 to 24 inclusive
£7.70
Aged 18 to 20 inclusive
£6.15
Aged under 18 (but above compulsory school leaving age)
£4.35
Apprentices aged under 19
£3.90
Apprentices aged 19 and over, but in the first year of their apprenticeship
£3.90

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9) National Insurance Contribution

National Insurance Contributions(NIC) Rates for the tax year 2019-20 are shown in below tables.

Employee NI Rates expressed as decimal

National Insurance category letter Earnings at or above LEL upto and including ST
Earnings above ST up to and including UEL/UST/AUST Balance of earning above UEL/UST/AUST
A 0 0.12 0.02
B 0 0.06 0.02
C NIL NIL NIL
H 0 0.12 0.02
J 0 0.12 0.02
M 0 0.12 0.02
Z 0 0.2 0.02
 

Employer NI Rates expressed as decimal

National Insurance category letter Earnings at or above LEL upto and including ST Earnings above ST up to and including UEL/UST/AUST
Balance of earning above UEL/UST/AUST
A 0 0.1380 0.1380
B 0 0.1380 0.1380
C 0 0.1380 0.1380
H 0 0 0.1380
J 0 0.1380 0.1380
M 0 0 0.1380
Z 0 0 0.1380
 

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