Your guide to year-end tax
Mar 28, 2019
The new tax year is fast-approaching, here’s what you need to know.
The new tax year begins on 6th April. You do not need to take any action, but you do need to be aware of what this means to you as a contractor.
Personal tax allowance
- The Personal Tax Allowance is rising from £11,850 to £12,500 per year. Good news for all contractors!
Umbrella employees & CIS contractors
- Payment dates
The last payment date for the 2018/19 tax year will be Friday, 5th April. If you usually submit a timesheet you will need to do so in time to meet your agency’s year-end deadline. It’s worth checking your agency’s deadline as different companies may work to different dates.
Umbrella employees
- Week 53
In the 2018/19 tax year there are 53 Fridays, so Umbrella employees paid weekly on a Friday will receive 53 payments rather than the usual 52. PAYE tax is deducted differently in week 53 as HMRC treats it as ‘non-cumulative’ ie. tax is deducted without taking into account previous pay and tax details. National Insurance Contributions are calculated as normal.
- P60s
A P60 provides pay and tax information relating to payments made to employees. You will receive one at the end of May if you are employed by Crest Plus on 5 April 2019 (the last day of the tax year).
If you cease employment with us on or after 5 April 2019 you will get a P60 for 2018/19 and a P45 for 2019/20 (if you didn’t receive payments in the new tax year then the P45 will be blank).
- Workplace pension contributions
If you are a member of our workplace pension scheme you need to be aware that the minimum contributions made by both you and us is increasing.
From 6th April your minimum contribution will increase from 3% to 5% and our employer contribution will increase from 2% to 3%. This means the total contribution will increase from 5% to 8%.
National Insurance changes
The National Insurance thresholds and bands will be increased for 2019/20.
Employed
Earnings Class 1 rate
Less than £8,632 0%
£8,632 – £50,000 12%
More than £50,000 2%
Self employed
Earnings Class 2 rate
Less than £6,365 0%
£6,365 – £8,632 £3 per week
Earnings Class 4 rate
£8,632 – £50,000 9%
More than £50,000 2%
If you have any queries about year-end tax, please get in touch with us on 01244 684700.
NEW – Post-graduate loans
- Post-graduate loan repayments will begin for the first time in 2019/20.
- The repayment threshold will be £21,000 (£403.84 per week).
- Post Graduate Loan deduction rate is 6%. This runs independently to Student Loan and so you may find you have both running concurrently.
NEW – Tax code for Wales
- Contractors who live in Wales will see they have a new standard Tax Code (C1250L) for 2019/20.