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The amount of income tax you deduct from your employees depends on their tax code
(https://www.gov.uk/employee-tax-codes) and how much of their taxable income is above their personal allowance (https://www.gov.uk/income-tax-rates/current-rates-and-allowances).
The tax thresholds and rates for England and Wales from 6 April 2018 up until 5 April 2019 are: -
|
Personal allowance |
£228 per week £988 per month £11,850 per year
|
|
UK basic tax rate |
20% on annual earnings above the PAYE tax threshold and 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 |
There are different rates for Scotland.
The emergency tax codes from 6 April 2018 are:
- 1185L W1
- 1185L M1
- 1185L X
To find out more about emergency tax codes please visit https://www.gov.uk/tax-codes/emergency-tax-codes.
For more detailed information on this, please visit https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2018-to-2019
Helen Fielding 19 February 2018