You pay Class 1B National Insurance if you have a PSA. Class 1B National Insurance: PAYE Settlement Agreements ( PSAs) Pay employers’ Class 1A National Insurance. You report and pay Class 1A on these types of payments during the tax year as part of your payroll. Class 1A National Insurance: termination awards and sporting testimonial paymentsĬlass 1A National Insurance contributions are due on the amount of termination awards paid to employees which exceed £30,000 and on the amount of sporting testimonial payments paid by independent committees which exceed £100,000. You report and pay Class 1A on expenses and benefits at the end of each tax year.
You must pay Class 1A National Insurance on work benefits you give to your employees, for example a company mobile phone. National Insurance category letterĮarnings at or above lower earnings limit up to and including secondary thresholdĮarnings above secondary threshold up to and including upper earnings limit, upper secondary thresholds for under 21s, apprentices and veteransīalance of earnings above upper earnings limit, upper secondary thresholds for under 21s, apprentices and veteransĬlass 1A National Insurance: expenses and benefits Pay employers’ PAYE tax and National Insurance. You pay secondary contributions (employer’s National Insurance) to HMRC as part of your PAYE bill. National Insurance category letterĮarnings at or above lower earnings limit up to and including primary thresholdĮarnings above the primary threshold up to and including upper earnings limitīalance of earnings above upper earnings limit Class 1 National Insurance thresholdsĪpprentice upper secondary threshold (apprentice under 25)Ĭlass 1 National Insurance rates Employee (primary) contribution ratesĭeduct primary contributions (employee’s National Insurance) from your employees’ pay through PAYE. You can only make National Insurance deductions on earnings above the lower earnings limit. The emergency tax codes from 6 April 2021 are:įind out more about emergency tax codes. England and Northern Ireland PAYE tax rates and thresholdsĮnglish and Northern Irish basic tax rateĢ0% on annual earnings above the PAYE tax threshold and up to £37,700Įnglish and Northern Irish higher tax rateĤ0% on annual earnings from £37,701 to £150,000Įnglish and Northern Irish additional tax rateġ9% on annual earnings above the PAYE tax threshold and up to £2,097Ģ0% on annual earnings from £2,098 to £12,726Ģ1% on annual earnings from £12,727 to £31,092Ĥ1% on annual earnings from £31,093 to £150,000
#2020 to 2021 tax brackets code#
The amount of Income Tax you deduct from your employees depends on their tax code and how much of their taxable income is above their Personal Allowance.
#2020 to 2021 tax brackets software#
Your payroll software will calculate how much tax and National Insurance to deduct from your employees’ pay.
You normally operate PAYE as part of your payroll so HMRC can collect Income Tax and National Insurance from your employees. PAYE tax and Class 1 National Insurance contributions Unless otherwise stated, the following figures apply from 6 April 2021 to 5 April 2022.
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