Changes for April 2020
As we begin another year it may be wise to review the planned changes for the new tax year. As we all know the budget announcement has not been made yet, however, we can take a look at what we know is going to happen in April 2020.
National Minimum Wage
From 1st April 2020 the rates will be increased to the following:
- National living wage for ages 25 and over – £8.72
- National Minimum wage for ages 21 to 24 – £8.20
- For ages 18 to 20 – £6.45
- For age under 18 – £4.55
- Apprentices – £4.15
Student Loan threshold from 6th April 2020.
Plan 1 loans – All loans taken for those who started university between 1998 and 2011, plus Scottish and Northern Irish loans since 2012. The threshold for this will increase to £19,390 per year.
Plan 2 loans – All Welsh and English loans for those who started in or after 2012. The threshold will increase to £26,575 per year.
Postgraduate loans – The threshold will stay at £21,000.
The conservative manifesto pledged that there will be no increase to the income tax rates;
“We promise not to raise the rates of income tax, national insurance or VAT. This is a tax guarantee that will protect the incomes of hard-working families across the next Parliament.”
National Insurance threshold
It has also been pledged that the salary threshold for paying National Insurance will rise to £9,500 in April. The rate is currently £8,632 per year.
There has not yet been any indication given regarding the new rates for statutory sick pay, paternity and maternity pay, or adoption pay.
If you have any questions on the above, please email Emma Mahoney, Payroll Client Manager at MHA Moore and Smalley.