JMA News

Rates & Allowances

Tax

The standard Personal Allowance is £12,500 which is the amount of income you don’t have to pay any tax on. That’s £240 per week.

 

National Insurance

 You pay National Insurance contributions to qualify for the State Pension.

You pay National Insurance if you’re 16 or over and either:

  • an employee earning above £183 a week
  • self-employed and making a profit of £6,475 or more a year

You need a National Insurance Number before you can start paying National Insurance contributions.

If you earn between £120 and £183 a week, your contributions are treated as having been paid to protect your National Insurance record.

Pensions

Workplace pension contributions

The minimum your employer pays You pay Total minimum contribution
From April 2020 3% 5% 8%

Your employer must contribute the minimum amount if you earn more than:

  • £520 per month
  • £120 per week
  • £480 per 4 weeks

They do not have to contribute anything if you earn these amounts or less.