Tax Rate Changes from 2019

by Gill_admin.

Nanny's 5, 10 and 20 British pound notes close up

The government has announced changes to the tax rate from April 2019, which will affect you if you are an employee or an employer to a Nanny or other in home helper.

The personal allowance will rise to £12,500 from April 2019 and the basic rate of tax limit will rise to £37,500. (The higher rate threshold will rise to £50,000 in tax year 2020/21, so the following tax year.)

National Living Wage and National Minimum Wage

National Living Wage rate for those aged 25 years and over will increase to £8.21 per hour from April 2019

Additionally, National Minimum Wage will also increase for younger employees to the tune of :

  • £7.70 per hour for 21-24 year olds
  • £6.15 per hour for 18-20 year olds
  • £4.35 per hour for 16& 17 year olds
  • £3.90 per hour for apprentices (apart from those apprentices working for Lord Alan Sugar!)

The accommodation off-set for live in employees will rise to £7.55 per day which is £52.85 per week.

Remember that Heavenly quotes salaries in GROSS, meaning that figures are before tax and NI contributions. NET salaries, as well as total cost to employers and pension contribution amounts, can be found using this handy calculator on the Nanny Tax website. The changes for the 2019 financial year will be reflected on the Nanny Tax website too.

If you have any questions about the difference this will make to how much to pay a nanny or in home employee, do not hesitate to get in touch. We are also happy to advise on all matters nanny related.

See here for more details:

Autumn Budget 2018

Current average Nanny salaries throughout the UK