2019/20 – rates and allowances

Budget 2018 announced a number of changes to the main rates and allowances for the 2019/20 tax year.

You can find a write up of the main Budget announcements as they affect low-income taxpayers on the main LITRG website.

HMRC has now published an annex which summarises the main 2019/20 tax related rates and allowances that were announced in Budget 2018.

As an employer running payroll, or indeed as a disabled person in receipt of benefits, you may be particularly interested in the following categories:

  • Personal tax and benefits
  • National Insurance contributions (NICs)
  • Working and child tax credits, child benefit and guardians allowance

Another couple of important measures for an employer to note for the 2019/20 tax year, which do not appear in the annex, are:

  • That from April 2019, the National Living Wage (paid to workers aged 25 or over) will increase from £7.83 an hour to £8.21, with similar increases scheduled for the other rates. You can find more information on the GOV.UK website
  • That from April 2019, there will be an increase in the minimum contributions required of you under the automatic enrolment rules – from 2% of an employees’ qualifying earnings, to 3%.  You can find more information on The Pensions Regulator’s website

We are in the process of creating a payroll fact card for the 2019/20 tax year, which will be available to download from this website as soon as it is ready.