2019-20 tax year payroll changes – a Parental Choice Guide

by ParentalChoice
in Tax and Pensions, Payroll
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The new financial year starts on April 6 and we have looked at the 2019-20 tax year payroll changes which will affect you if you are an employer.

  • The STANDARD PERSONAL TAX ALLOWANCE for employees will increase from £11,850 to £12,500;
  • NATIONAL INSURANCE THRESHOLDS will also increase slightly, check out the values here.
  •  AUTO-ENROLMENT PENSION CONTRIBUTIONS will increase as follows:
Date effective Employer minimum contribution Staff contribution Total minimum contribution
Current to 5 April 2019 2% 3% 5%
6 April 2019 onwards 3% 5% 8%

For more details on workplace pensions see here.

  • NATIONAL LIVING WAGE & NATIONAL MINIMUM WAGE will increase as detailed:

The National Living Wage for those aged 25 and over will increase from £7.83 per hour to £8.21 per hour from April 2019. For a full-time worker receiving the current National Living Wage, it represents a pay rise of almost £700 a year, based on 35 hours worked per week.

The National Minimum Wage will also increase as follows:

Year 25 and over 21 to 24 18 to 20 Under 18 Apprentice
April 2018 (current rate) £7.83 £7.38 £5.90 £4.20 £3.70
April 2019 £8.21 £7.70 £6.15 £4.35 £3.90


Parental Choice’s payroll services, PC Payroll can help you with all your payroll, pension enrolment and legal employment needs.  If you are new to employing staff; are unhappy with your current payroll provider; or finding running payroll for your business time consuming we can help.

Call us on 020 8979 6453  |  email


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