PAYE
Tax code changes
The emergency tax code for the 2023/24 tax year remains at 1257L, and there are no uplifts in tax codes.
The tables below show the bandwidths for the rest of the UK, Scotland and Wales.
Rest of UK Bandwidths & Rates
| From (£) | To (£) | Rate (%) | Band |
| 0.01 | 37,700.00 | 20 | Basic rate |
| 37,700.01 | 125,140.00 | 40 | Higher rate |
| 125,140.01 | excess | 45 | Additional rate |
National Insurance
Earnings bands
| Weekly (£) | Monthly (£) | Yearly (£) | |
| Lower Earnings Limit (LEL) | 123.00 | 533.00 | 6,369.00 |
| Primary Threshold (PT) | 242.00 | 1048.00 | 12,570.00 |
| Secondary Threshold (ST) | 175.00 | 758.00 | 9,100.00 |
| Freeports Upper Secondary Threshold (FUST) | 481.00 | 2083.00 | 25,000.00 |
| Veterans Upper Secondary Threshold (VUST) | 967.00 | 4189.00 | 50,270.00 |
| Upper Earnings Limit (UEL) | 967.00 | 4189.00 | 50,270.00 |
| Upper Secondary Threshold (UST) | 967.00 | 4189.00 | 50,270.00 |
| Apprentice Upper Secondary Threshold (AUST) | 967.00 | 4189.00 | 50,270.00 |
NI Category A Rates
| Employee Rate (%) | Employer Rate (%) | |
| LEL up to ST | 0.00 | 0.00 |
| St to PT | 0.00 | 13.80 |
| PT to ST | 12.00 | 13.80 |
| ST up to UEL/UST/AUST | 12.00 | 13.80 |
| Excess of UEL/UST/AUST | 2.00 | 13.80 |
Statutory payments
The Statutory payments rates are changing from 6 April 2023.
Statutory sick pay
Employees on weekly earnings greater than or equal to the Lower Earnings Limit are entitled to a statutory weekly rate of £109.40 from 6 April 2023.
New statutory sick pay rates:
| Unrounded daily rates | Number of working days in week | 1 day to pay | 2 days to pay | 3 days to pay | 4 days to pay | 5 days to pay | 6 days to pay | 7 days to pay |
| £15.6285 | 7 | £15.63 | £31.26 | £46.89 | £62.52 | £78.15 | £93.78 | £109.40 |
| £18.2333 | 6 | £18.24 | £36.47 | £54.70 | £72.94 | £91.17 | £109.40 | |
| £21.8800 | 5 | £21.88 | £43.76 | £65.64 | £87.52 | £109.40 | ||
| £27.3500 | 4 | £27.35 | £54.70 | £82.05 | £109.40 | |||
| £36.4666 | 3 | £36.47 | £72.94 | £109.40 | ||||
| £54.7000 | 2 | £54.70 | £109.40 | |||||
| £109.4000 | 1 | £109.40 |
Parental pay and leave
The rates below come into effect from the first Sunday in April.
New Parental pay and leave rates:
| Payment | Higher rate % | The standard rate is the lesser of:
£ |
or,
% |
Weeks at higher rate | Weeks at Standard rate |
| Statutory Maternity Pay | 90.00 | 172.48 | 90.00 | 6 | 33 |
| Statutory Adoption Pay | 90.00 | 172.48 | 90.00 | 6 | 33 |
| Statutory Paternity Pay | N/A | 172.48 | 90.00 | N/A | 2 |
| Shared Parental Pay | N/A | 172.48 | 90.00 | N/A | 37 |
| Parental bereavement | N/A | 172.48 | 90.00 | N/A | 2 |
Student loans
When you set up a student loan deduction for an employee, you must specify whether they’re on Plan 1, Plan 2 or Plan 4.
| Type | Weekly £ | Monthly £ | Annual £ | Rate % |
| Plan Type 1 | 423.36 | 1,834.58 | 22,015.00 | 9.00 |
| Plan Type 2 | 524.90 | 2,274.58 | 27,295.00 | 9.00 |
| Plan Type 4 | 531.92 | 2,305.00 | 27,660.00 | 9.00 |
Employment allowance
For the 2023/24 tax year, Employment allowance is £5,000.
National minimum / living wage rates
The following rates are effective from 1 April 2023.
| Age | Hourly Rate (£) |
| 23 and older | 10.42 |
| 21 – 22 | 10.18 |
| 18 – 20 | 7.49 |
| 16 – 17 | 5.28 |
| Apprenticeship | Read more > |
Apprenticeship Levy
The Apprenticeship Levy Allowance is set to £15,000.
The Apprenticeship Levy Rate is set to 0.5%.