Tax and National Insurance thresholds are updated at the start of the new tax year

The following tax and national insurance thresholds apply from 6th April 2019

Employees can earn £12,500 before tax

A personal tax free allowance of £12,500 translates into a tax code of 1250L.  The majority of employees will be on this tax code unless they have been issued different code by HMRC

Each employee is allowed to earn tax free;
  • £240 per week
  • £1,042 per month
  • £12,500 per year

Once the personal allowance has been used tax is deductible on all earnings above £12,500 at a rate of 20% up to the higher rate threshold of £37,500

Above £37,501 a higher rate of tax at 40% is applied to earnings up to £150,000

For all earnings above £150,000 an additional rate of 45% is applied.

National Insurance Thresholds

Employees can earn £166 a week before any liability to primary national insurance contributions are due.

Employer’s secondary national insurance contributions start when the employee’s earnings reach £166 a week, except for employee’s under 21 and apprentices under 25. For these two groups the employer will not contribute until the upper earnings level is reached £962 per week.


 We provide free employer support to all our clients