Not sure how much income tax to deduct from your employees?
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 2019 up until 5 April 2020 are: -
Personal allowance |
£240 per week £1,042 per month £12,500 per year
|
UK basic tax rate |
20% on annual earnings above the PAYE tax threshold and up to £37,500 |
UK higher tax rate |
40% on annual earnings from £37,501 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 2019 are:
- 1250L W1
- 1250L M1
- 1250L 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-2019-to-2020.