United Kingdom

Social security contributions in detail

For tax year 2019-2020, the contribution is as follows: for employees on cash earnings and benefits which are readily convertible such as listed shares between GBP 8,632 and GBP 50,000 (EUR 9,847.96 and EUR 57,043.35) the contribution is 12%, whilst on cash earnings and readily convertible benefits in excess of GBP 50,000 (EUR 9,847.96) the contribution is 2% uncapped. For employers on cash earnings and most benefits the contribution is 13.8% on earnings in excess of GBP 8,632 (EUR 57,043.35) uncapped.

Both employee and employer contributions on cash earnings and readily convertible benefits must generally be paid within 14 days of the end of the tax month (which runs from the 6th of the first month to the 5th of the following month). Employer contributions on other benefits in kind must generally be paid by 19th July following the end of the tax year. The contributions count towards state pension, unemployment benefit, maternity allowance, bereavement benefits and incapacity benefit.

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Author: Lewis Silkin LLP

Date: March 2019

Note: All currency conversions into EUR were made on 1 February 2019, using a mid-market rate.