SOCIAL CONTRIBUTIONS

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National Insurance Number:

All employees working in the UK or/and having their main place of work in the UK, have to be registered to the National Insurance and get an individual NI Number. In order to be able to apply for one, the new UK employee will have to call the « National Insurance number application line” 0345 600 0643 to get an appointment within two months. The employee will have to provide some documents to prove identity and place of living, cf.www.gov.uk/apply-nationalinsurance-number.
Once the NI obtained, get registered at a local GP in case of illness.

P45/Starter checklist forms:

When a new employee joins a UK company, he has to present to his new employer his P45 form obtained from his previous employer, or if doesn’t have one he will have to complete a starter checklist form, available to download on the HMRC’s website. These forms are sent to the HMRC in order they can trace the employment and allocate Tax codes & NIC codes to the relevant persons.

Tax Code and PAYE:

Once a year, each UK employee receives from the HMRC, his new tax code, calculated on previous year taxable incomes. This tax code will have to be made available as soon as possible to the employer in order the PAYE deduction on the payroll is calculated accurately. If this code is not available yet or not transmitted to the employer, the emergency tax code & tax rate will apply and regularization will be made only after the end of the UK tax year, being 5th of April each year.

STATUTORY SICK PAY (SSP) 2017

(see « Focus On SSP » SEDI’s form for more details)

As an employer, you have to maintain a minimum regulated salary when your employee is on a sick leave. It is highly recommended to secure even a bit more with a complementary Company sick paid and/or income protection for example, than the minimum regulated salary if you wish your employee is able to survive during his sick leave.

The 2017 weekly rate of SSP is £89.35 up to 28 weeks.

First 3 days being called « waiting days », are paid at the discretion of the employer. The SSP Policy in the company has to be very much disclosed either in the employment contract or in the company handbook when there is one. It will be up to the employer to calculate the « qualifying days » applicable for the SSP calculation.

A sick note is complusory after 7 days.

MILEAGE PAYMENTS FOR BUSINESS TRAVEL

1 mile = 1.609344 Km

Employee vehicles: Mileage Allowance Payments (MAPs)

Car mileage can be reimbursed 45 pences per mile for the first 10 000 miles, then 25p for each subsequent mile.

Company cars - advisory fuel rates from 1st March 2017

Engine size Petrol LGP
1400cc or less 11p/mile 7p
1401cc to 2000cc 14p/mile 9p
Over 2000cc 20p/mile 14p
Engine size Diesel
1600cc or less 9p/mile
1601cc to 2000cc 11p/mile
Over 2000cc 13p/mile

SOCIAL CONTRIBUTIONS

Employer NIC = charges patronales
13,8% du salaire brut
Employee NIC (primary) Class 1
Contribution = charges salariales
De £157 à £865 / week 12%
> à £866 / week 2%

Complusory Employee pension scheme

This is called the Automatic enrolment and each UK employer needs to pay the correct contributions on time to the employees pension scheme. If you don’t, you risk being fined by the regulator.

Minimum contributions that you must pay

Date Employer Min. contr. Total min. contribution
Up to 5.4.18 1% 2%
(in1% ER +1¨% EE)
06/04/18 - 05/04/19 2% 5%
(2% ER + 3% EE)
06/04/19 onwards 3% 8%

NATIONAL MINIMUM WAGE

Updated each 1st October

From April 2017 : £ 7.50 hour for employees 25 years old and over.
From 21 to 24 years old it is £7.05/hour.

INCOME TAX RATE 2017-2018

Rate Taxable Income
Personal Allowance 0% Jup to £11 500
Basic rate: 20% £11 501 - £45 000
Higher rate: 40% £45 001- £150,000
Additional rate : 45% > 150.000 GBP

STATUTORY PAID LEAVE

Employees are legally entitled to 28 days of paid annual leave.

2017 Public Holidays
January 2 New Year's Day (substitute day)
April 14 Good Friday
April 17 Easter Monday
May 1 Early May Bank Holiday
May 29 Spring Bank Holiday
August 28 Summer Bank Holiday
December 25 Christmas day
December 26 Boxing day

Bank or public holidays do not have to be given as paid leave. An employer can choose to include bank holidays as part of a worker’s statutory annual leave.

Download this information as a PDF 2017