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1014. Tax year 2018-19 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.

When moving to new tax year 2018-19, please take a note of the following changes below:-

1) Global Tax Code uplifted to 1185L
2) Income Tax Rates and Bandwidth
3) National Insurance Contributions(NIC) Rates
4) Auto Enrolment Minimum Contribution Rates
5) Statutory Payment Rates
6) Student Loan Rates
7) National Minimum Wage

1) Global Tax Code uplifted to 1185L

Personal allowance increased from 11,500 to 11,850 for the tax year 2018-19. HMRC have announced a general 'uplift' of all tax codes with 'L' suffix by 35. The employee with tax code 1150L in 2017-18 will have their tax code uplifted to 1185L from 6 April 2018.

Tax Codes(UK)
Emergency Tax Code 1185L
L Suffix Uplift 35
M Suffix Uplift 39
N Suffix Uplift 31

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2) Income Tax Rates and Bandwidth

Personal allowance increased from 11,500 to 11,850 for the tax year 2018-19. The threshold for PAYE is 988 per month. Below are the income tax rates and bandwidth for UK and Scotland that will come into effect from 6th April 2018.

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

UK Rate % Bandwidth
Basic Rate 20% 1 to 34,500
Higher Rate 40% 34,501 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 2,000
Basic Rate 20% 2,001 to 12,150
Intermediate Rate 21% 12,151 to 31,580
Higher Rate 41% 31,581 to 150,000
Top Rate 46% 150,001 and above

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3) National Insurance Contributions (NIC) Rates

National Insurance Contributions (NIC) Rates for the tax year 2018-19 are shown in below tables.

Employee NI Rates expressed as decimal

  A B C H J M Z
LEL-PT 0 0 0 0 0 0 0
PT-UEL 0.12 0.0585 0 0.12 0.02 0.12 0.02
  0.12 0.0585 0 0.12 0.02 0.12 0.02
Above UEL 0.02 0.02 0 0.02 0.02 0.02 0.02

Employer NI Rates expressed as decimal

  A B C H J M Z
LEL-ST 0 0 0 0 0 0 0
  0 0 0 0 0 0 0
ST-UEL 0.138 0.138 0.138 0 0.138 0 0
Above UEL 0.138 0.138 0.138 0.138 0.138 0.138 0.138

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4) Auto Enroment Minimum Contribution Rates

From 6th April 2018, the minimum contribution rates for auto enrolment pension  will increase as per the phasing planned by law.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 2018) the new rates become effective.

Date Employer Minimum Contribution Employee Minimum Contribution Total Minimum Contribution
Currently until 5th April 2018 1% 1% 2%
6th April 2018 - 5th April 2019 2% 3% 5%
From 6th April 2019 onwards 3% 5% 8%

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5) Statutory Payment Rates

The Small Employer's Relief threshold (45,000) and recovery rate (3%) remain unchanged for 2018-19, as does the standard recovery rate (92%).

Statutory payment rate (weekly) for the tax year 2018-19 are shown in the table below.

Statutory Sick Pay(Weekly) £92.05
Statutory Maternity Pay (Weekly) £145.18
Statutory Paternity Pay (Weekly) £145.18
Statutory Adoption Pay (Weekly) £145.18
Statutory Shared Parental Pay(Weekly) £145.18

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6) Student Loan Rates

From 6 April 2018 onward student loan threshold for

  • Plan 1 will increase from 17,775 to 18,330
  • Plan 2 will increase from 21,000 to £25,000

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

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7)National Minimum Wage Rates

Category of Worker Hourly Rate
Aged 25 and above (national living wage rate) £7.83
Aged 21 to 24 inclusive £7.38
Aged 18 to 20 inclusive £5.90
Aged under 18 (but above compulsory school leaving age)

£4.20
Apprentices aged under 19 £3.70
Apprentices aged 19 and over, but in the first year of their apprenticeship

£3.70

 

Please refer to the HMRC Employer Bulletin click here