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Wednesday 19th December 2018 - Last update: May 29th, 2018.

What’s new for Payroll 2018/2019?

March 13, 2018


Type: Advice for Businesses, Dental Blogs, Latest Blogs, Medical Blogs, Payroll, Pharmacy Blogs, Trending

As another tax year end looms the new rates and allowances for the 2018/2019 tax year have been released. Here is a brief overview of the changes for the upcoming tax year.




The Employee Personal Allowance is increasing to £11850.00. Therefore the emergency tax code will be 1185L. All tax codes with an L suffix need to be increased by 35 after the 6th April 2018. For all other tax codes a P9 notice will be issued by HMRC.


PAYE tax rates and thresholds 2018 to 2019
Employee 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


National Insurance


The percentage rates have not changed from the 2017/2018 tax year. However some of the earnings limits and thresholds have.


Class 1 National Insurance thresholds 2018 to 2019
LEL £116 per week
£503 per month
£6,032 per year
Primary Threshold (PT) – Employees start to pay NI contributions £162 per week
£702 per month
£8,424 per year
Secondary Threshold (ST) – Employers start to pay NI contributions £162 per week
£702 per month
£8,424 per year
Upper Secondary Threshold (under 21) (UST) £892 per week
£3,863 per month
£46,350 per year
Apprentice Upper Secondary Threshold (apprentice under 25) (AUST) £892 per week
£3,863 per month
£46,350 per year
Upper Earnings Limit (UEL) £892 per week
£3,863 per month
£46,350 per year


Employment Allowance


This allowance remains at £3000. If this allowance was claimed in the 2017/2018 tax year it will automatically be claimed for the 2018/2019 tax year unless HMRC are advised otherwise. The allowance does not apply if the sole employee is a Director.


Statutory Payments


The Statutory Sick Pay rate is increasing to £92.05 per week. This rate applies to sickness from the 6th April 2018. Statutory Sick Pay can no longer be recovered by the Employer.


Statutory Maternity Pay, Statutory Adoption Pay and Statutory Paternity Pay rate for 2018/2019 will be £145.18. This rate applies for any pay weeks on or commencing after the 1st April 2018.


The Shared Parental Pay rate is also set at £145.18.


The rate of recovery on Statutory Payments for Parents remains at 92%, or 103% for employers who previous year’s Class 1 National Insurance amount is £45,000 or less.




The National Living Wage and National Minimum Wage rates will increase on the 6th April 2018.


  25 and over –  21 to 24 –  18 to 20 –  Under 18 –  Apprentice
April 2018 £7.83 £7.38 £5.90 £4.20 £3.70


Student Loans


The threshold for Plan 1 will rise to £18,330, and the threshold for Plan 2 £25,000.


If you have any questions regarding the new rates and allowances for the 2018/2019 tax year  then please contact Emma Mahoney, or alternatively phone 01772 840414 to speak to our Payroll team.


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