Happy new tax year day!
06 April 2021
Here at the CIPP, we hope you all had a relaxing Easter weekend and enjoyed the break.
The first day back in the office is 6 April 2021, so happy new tax year everybody!
We have provided an overview of some of the rates that change from today that payroll professionals should be aware of:
Income Tax rates and thresholds
- Personal Allowance - £12,570
- Higher Rate Threshold - £50,270
- Income tax bands rUK
- Basic rate – 20%: £1 to £37,700
- Higher rate – 40%: £37,701 to £150,000
- Additional rate – 45% over £150,000
** Personal Allowance, income tax bands and Higher Rate Threshold frozen until April 2026**
- Marriage Allowance - £1,260
- Blind Person’s Allowance - £2,520
- Married Couple’s Allowance – max. £9,125, min. £3,530
Income tax bands for Scotland:
- Starter rate (19%): £1 to £2,097
- Basic rate (20%): £2,098 to £12,726
- Intermediate rate (21%) £12,727 to £31,092
- Higher rate (41%): £31,093 to £150,000
- Top rate (46%): over £150,000
Welsh Rates of Income Tax (WRIT) – 10p in the pound
National Insurance (NI) weekly limits and thresholds
- Lower Earnings Limit (LEL) - £120 (unchanged)
- Primary Threshold (PT) - £184 (increase from £183)
- Secondary Threshold (ST) - £170 (increase from £169)
- Upper Earnings Limit (UEL) - £967 (increase from £962)
- Upper Secondary Threshold (UST) - £967 (increase from £962)
- Apprentice Upper Secondary Threshold (AUST) - £967 (increase from £962)
Statutory payment rates (weekly)
- Statutory Maternity Pay (SMP) –
- First six weeks – 90% of Average Weekly Earnings (AWE)
- Remaining weeks - £151.97 or 90% of AWE (whichever is lower)
- Statutory Adoption Pay (SAP) –
- First six weeks – 90% of AWE
- Remaining weeks - £151.97 or 90% of AWE (whichever is lower)
- Shared Parental Pay (ShPP) - £151.97 or 90% of AWE (whichever is lower)
- Statutory Paternity Pay (SPP) - £151.97 or 90% of AWE (whichever is lower)
- Statutory Parental Bereavement Pay (SPBP) - £151.97 or 90% of AWE (whichever is lower)
Statutory Sick Pay (SSP)
- £96.35 per week
Statutory Redundancy Pay
- The prescribed cap on weekly pay will increase to £544. Consequently, statutory redundancy pay will increase, with the maximum payment increasing to £16,320
Student Loan Thresholds
- Plan one - £19,895
- Plan two - £27,295
- NEW Plan four - £25,000
- Post Graduate Loan - £21,000
Information provided in this news article may be subject to change. Please make note of the date of publication to ensure that you are viewing up to date information.