Guidance on rates and thresholds for 2021-22 updated
18 March 2021
In preparation for the start of tax year 2021-22, HMRC has updated the guidance page which details the rates and thresholds for employers to use when operating their payrolls or when providing expenses and benefits to their employees.
Payroll professionals should familiarise themselves with the figures provided within the guidance and should refer back to it if ever in any doubt about rates or thresholds.
The guide covers details of:
- PAYE tax and Class 1 National Insurance (NI) contributions
- Tax thresholds, rates, and codes
- Class 1 National Insurance (NI) thresholds and rates
- Class 1A NI: expenses and benefits
- Class 1A NI: termination awards and sporting testimonial payments
- Class 1B NI: PAYE Settlement Agreements (PSAs)
- National Minimum Wage (NMW)
- Statutory Maternity, Paternity, Adoption, Shared Parental and Parental Bereavement Pay
- Statutory Sick Pay (SSP)
- Student loan and postgraduate loan recovery
- Company cars: advisory fuel rates
- Employee vehicles: mileage allowance payments
- Employment Allowance
- Apprenticeship Levy
The full guidance is available here.
CIPP comment
If you are a member of the CIPP (associate and above), then you will receive the Tax pack, which includes the reference book, fact card and pen. You will also be able to download the fact app, and the fact card will be included in April’s edition of Professional magazine, which is provided to all members. This shows all of the information that payroll professionals need to be aware of for tax year 2021-22.
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.