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. Download the CIPP's Payroll: Need to know - your guide to payroll legislation and reporting for the most up to date data.