Latest rates and allowances

 

Income Tax

Personal Allowance (UK-wide)

 

Tax Allowance

2020/21

2021/22

 

£

£

Personal Allowance

12,500

12,570

Income limit

100,000

100,000

 

 

The Marriage Allowance (UK-wide)

 

Tax Allowance

2020/21

2021/22

 

£

£

Marriage Allowance

1,250

1,260

 

 

Tax suffixes M and N are used where M is the receiver and N the transferor.

Tax Code Uplifts (UK-wide)

Showing annual value of the Personal Allowance before and after any transfer:

 

Suffix

2020/21

2021/22

Change

Change

 

£

£

£

Points

L

12,500

12,570

70

7

M

13,750

13,830

80

8

N

11,250

11,310

60

6

 

 

Other Tax Allowances (UK-wide)

 

Tax Allowance

2020/21

2021/22

Change

 

£

£

£

The Married Couple’s Allowance*

  • Maximum

9,075

9,125

+50

  • Minimum

3,510

3,530

+20

  • Income Limit

30,200

30,400

+200

Blind Person’s Allowance

2,500

2,520

+20

Personal Savings Allowance

  • Basic Rate taxpayers

1,000

1,000

0

  • Higher Rate taxpayers

500

500

0

 

 

* Note that the Married Couple’s Allowance is an age-related allowance which has a different income limit compared to the UK-wide Personal Allowance.  The age-related allowance is reduced by £1 for every £2 of income over £30,400.

Tax Rates and Thresholds

Tax Rates (UK Taxpayers)

 

Band

Rate

 

%

Basic

20

Higher

40

Additional

45

 

 

Tax Rates (Welsh Taxpayers)

 

Band

Rate

Less

Plus WRIT

Rate

 

%

%

%

%

Basic

20

10

10

20

Higher

40

10

10

40

Additional

45

10

10

45

 

 

Tax Thresholds (UK Taxpayers and Welsh Taxpayers)

With a comparison to those that applied in 2020/21:

 

Band

2020/21

2021/22

 

£

£

Basic

1 – 37,500

1 – 37,700

Higher

37,501 to 150,000

37,701 – 150,000

Additional

Over 150,000

Over 150,000

 

 

The below may be a clearer table of the Income Tax ‘bracket’ that individuals will fall into:

 

Band

Rate

2020/21

2021/22

 

%

£

£

Basic

20

1 – 50,000

1 – 50,270

Higher

40

50,001 – 150,000

50,271 – 150,000

Additional

45

Over 150,000

Over 150,000

 

 

Tax Rates (Scottish Taxpayers)

The rates and band names remain:

 

Band

Rate

 

%

Scottish Starter

19

Scottish Basic

20

Scottish Intermediate

21

Scottish Higher

41

Scottish Top

46

 

 

Tax Thresholds (Scotland)

With a comparison to those that applied in 2020/21:

 

Band

2020/21

2021/22

 

£

£

Scottish Starter

1 – 2,085

1 – 2,097

Scottish Basic

2,086 – 12,658

2,098 – 12,726

Scottish Intermediate

12,659 – 30, 930

12,727 – 31,092

Scottish Higher

30,391 – 150,000

31,093 – 150,000

Scottish Top

Over 150,000

Over 150,000

 

 

Coupled with the rates above and the value of the UK-wide Personal Allowance, the below may be a clearer table of the Income Tax ‘bracket’ that individuals will fall into:

 

Band

2020/21

Rate

2021/22

Rate

 

£

%

£

%

Scottish Starter

12,500 – 14,585

19

12,571 – 14,667

19

Scottish Basic

14,586 – 25,158

20

14,668 – 25,296

20

Scottish Intermediate

25,159 – 43,430

21

25,297 – 43,662

21

Scottish Higher

43,431 – 150,000

41

43,663 – 150,000

41

Scottish Top

Over 150,000

46

Over 150,000

46

 

 

National Insurance     

Thresholds

 

Tax Year

Weekly

Fortnightly

Four-weekly

Monthly

Annual

 

 

£

£

£

£

£

Lower Earnings Limit (LEL)

20/21

120

240

480

520

6,240

21/22

120

240

480

520

6,240

 

 

 

 

 

 

 

Primary Threshold (PT)

20/21

183

366

731

792

9,500

21/22

184

368

736

797

9,568

 

 

 

 

 

 

 

Secondary Threshold (ST)

20/21

169

338

676

732

8,788

21/22

170

340

680

737

8,840

 

 

 

 

 

 

 

Upper Earnings Limit (UEL)

20/21

962

1,924

3,847

4,167

50,000

21/22

967

1,934

3,867

4,189

50,270

 

 

The Upper Secondary Threshold (UST) and Apprentice Upper Secondary Threshold (AUST) remains aligned with the value of the Upper Earnings Limit 2021/22 for: 

  • Employees under 21
  • Apprentices under 25 on a statutory apprenticeship and
  • Ex-Armed Forces veterans in the first 12 months of civilian employment

Contribution Rates

The Class 1 NICs rates structure is as follows, not including the letters that apply to mariners:

 

Primary (employee)

 

Band

Standard

Pensioners

Reduced

Deferred

Table Letters

A / M and H

C

B

J / Z

Earnings up to LEL

NIL

NIL

NIL

NIL

Earnings between LEL and PT

0%

NIL

0%

0%

Earnings between PT and UEL

12%

NIL

5.85%

2%

Earnings above UEL

2%

NIL

2%

2%

 

 

Secondary (employer) (over 25)

 

Band

A, B, C and J

Earnings up to LEL

NIL

Earnings between LEL and ST

0%

Earnings between ST and UEL

13.8%

Earnings above UEL

13.8%

 

 

Age-Related Secondary Contributions (16 – 20)

 

Band

M and Z

Earnings up to LEL

NIL

Earnings between LEL and ST

0%

Earnings between ST and UST

0%

Earnings above UST

13.8%

 

 

Relevant Apprentice Secondary Contributions (under 25)

 

Band

H

Earnings up to LEL

NIL

Earnings between LEL and ST

0%

Earnings between ST and AUST

0%

Earnings above AUST

13.8%

 

 

Employment Allowance 

For eligible employers:

 

2020/21

2021/22

£4,000

£4,000

 

 

Apprenticeship Levy

 

 

2020/21

2021/22

Levy Allowance (per employer)

£15,000

£15,000

Levy Charge

0.5%

0.5%

 

 

Statutory Payments

 

Statutory Sick Pay (SSP)

Applies to Average Weekly Earnings (AWE) at or above the LEL (£120 per week):

 

Unrounded daily rates

Number of QDs in week

Number of days due

1

2

3

4

5

6

7

£

 

£

£

£

£

£

£

£

13.7642

7

13.77

27.53

41.30

55.06

68.83

82.59

96.35

16.0583

6

16.06

32.12

48.18

64.24

80.30

96.35

 

19.2700

5

19.27

38.54

57.81

77.08

96.35

 

 

24.0875

4

24.09

48.18

72.27

96.35

 

 

 

32.1166

3

32.12

64.24

96.35

 

 

 

 

48.1750

2

48.18

96.35

 

 

 

 

 

96.3500

1

96.35

 

 

 

 

 

 

 

 

Payable from the first day of the new tax year (06 April 2021).

 

Parental Payments (SMP, SAP, SPP, ShPP and SPBP) 

Payable from the week that commences the first Sunday in April (04 April 2021):

 

Rates effective from week starting on or after Sunday

04 April 2021

Earnings Threshold (LEL)

£120

SMP / SAP weekly rate for first 6 weeks

90% AWE

Lesser of 90% AWE or the following Statutory rates:

  • SMP weekly rate for up to next 33 weeks
  • SAP weekly rate for up to next 33 weeks
  • SPP weekly rate
  • ShPP weekly rate
  • SPBP weekly rate (in Great Britain)

£151.97

Optional daily rate

£21.71

Percentage of payment recoverable

92%

Percentage of payment recoverable (Small Employer’s Relief)

100%

NI compensation recoverable under Small Employer’s Relief

3%

Annual NICs threshold for Small Employer’s Relief

£45,000

 

 

National Minimum / Living Wage

Applicable from the first full pay reference period starting on or after 01 April 2021:

 

Rate

From April 2020

From April 2021

Change

Change

 

£

£

%

£

Adults (23+) aka the National Living Wage

8.20

8.91

8.7

0.71

Adults (25+) aka the National Living Wage

8.72

8.91

2.2

0.19

Adult (21 – 22)

8.20

8.36

2.0

0.16

Youth Development (18 – 20)

6.45

6.56

1.7

0.11

Under 18 but above compulsory school leaving age)

4.55

4.62

1.5

0.07

Apprentice*

4.15

4.30

3.6

0.15

 

* For apprentices aged 16 to 18 and those aged 19 or over who are in the first year of their apprenticeship.  All other apprentices are entitled to rate applicable for their age.

The Accommodation Offset daily rate increased by 2% from £8.20 to £8.36.

 

Student Loans

Annual thresholds

Plan

%age

2020/21

2021/22

 

 

£

£

1

9%

19,390

19,895

2

9%

26,575

27,295

PGL

6%

21,000

21,000

4

9%

N/A

25,000

 

 

Per pay period thresholds

 

Plan

Tax Year

Annual

Weekly

Fortnightly

Four-weekly

Monthly

 

 

£

£

£

£

£

1

20/21

19,390

372.88

745.76

1,491.53

1,615.83

21/22

19,895

382.59

765.19

1,530.38

1,657.91

2

20/21

26,575

511.05

1,022.11

2,044.23

2,214.58

21/22

27,295

524.90

1,049.80

2,099.61

2,274.58

PGL

20/21

21,000

403.84

807.69

1,615.38

1,750.00

21/22

21,000

403.84

807.69

1,615.38

1,750.00

4

20/21

N/A

N/A

N/A

N/A

N/A

21/22

25,000

480.76

961.53

1,923.07

2,083.33

 

 

Pensions

Auto-Enrolment Thresholds 

Annual thresholds

With a comparison to those that applied in 2020/21, the Earnings Trigger is unchanged and the Qualifying Earnings Band (QEB) limits remain aligned with the UK-wide National Insurance Lower and Upper Earnings Limits:

 

Annual Threshold

2020/21

2021/22

 

£

£

QEB Lower Limit

6,240 (LEL)

6,240 (LEL)

QEB Upper Limit

50,000 (UEL)

50,270 (UEL)

Earnings Trigger

10,000

10,000

 

 

Pay Reference Period thresholds

For common Pay Reference Periods, the above translates as follows:  

 

Auto-Enrolment Thresholds 2021/22

 

Weekly

2 Weekly

4 Weekly

Monthly

Quarterly

6 Monthly

 

£

£

£

£

£

£

QEB Lower Limit (LEL)

120

240

480

520

1,560

3,120

QEB Upper Limit (UEL)

967

1,934

3,867

4,189

12,568

25,135

Earnings Trigger

192

384

768

833

2,499

4,998

 

 

Allowances

With a comparison to those that applied in 2020/21:

 

Pensions Tax Relief

 

2020/21

2021/22

 

£

£

Lifetime Allowance

1,073,100

1,073,100

Annual Allowance

40,000

40,000

Tapered Annual Allowance

10,000

4,000

Money Purchase Annual Allowance

4,000

4,000

 

 

Benefits-in-Kind

Cars

Diesel

The diesel supplement is 4% above the below Appropriate Percentages - with the exception of cars that meet the Real Driving Emissions Step 2 (RDE2) standard which are exempt.

 

Appropriate Percentages

From April 2020, the Finance Act changed the way company car tax is calculated as a move from determining the COemissions under the New European Driving Cycle (NEDC) measure to determining them under the Worldwide harmonised Light Vehicle Test Procedure (WLTP).  Legislation gave a new company car tax structure: 

The 1 – 50 CO2 is in 5 sub-bands: 

  1. 1 - 50 COwhere the car is capable of traveling 130 miles or more in zero-emission mode (called the electric range)
  2. 1 – 50 COwhere the electric range is between 70 and 129 miles
  3. 1 – 50 COwhere the electric range is between 40 and 69 miles
  4. 1 – 50 COwhere the electric range is between 30 and 39 miles
  5. 1 – 50 COwhere the electric range is less than 30 miles

Employers have an obligation to obtain the ‘electric range’ of a vehicle.  This is, simply, the number of miles that a car can travel is zero-emission mode.

The previous 51 – 75 COand 76 – 94 CObands are split to create 9 bands: 

  1. 51 – 54 COemissions
  2. 55 – 59 COemissions
  3. 60 – 64 COemissions
  4. 65 – 69 COemissions
  5. 70 – 74 COemissions
  6. 75 – 79 COemissions
  7. 80 – 84 COemissions
  8. 85 – 89 COemissions
  9. 90 – 94 COemissions

The move to WLTP from NEDC created two company car tax regimes from April 2020:

  1. For cars registered before 06 April 2020 (using COemissions measured under NEDC)
  2. For cars registered on or after 06 April 2020 (using COemissions measured under WLTP)

However, two themes are common:

  1. The maximum Appropriate Percentage is 37% and
  2. Diesel cars that are not RDE2 attract a 4% supplement (to a maximum of 37%)
     

2021/22 Appropriate Percentages (Cars registered before 06 April 2020)

(Based on the NEDC test for COemissions and not showing the 4% supplement):

 

COemissions (g/km)

Electric Range

Appropriate Percentage (%)

0

N/A

1

1 – 50

>130

2

1 – 50

70 – 129

5

1 – 50

40 – 69

8

1 – 50

30 – 39

12

1 – 50

<30

14

51 – 54

 

15

55 - 59

 

16

60 – 64

 

17

65 – 69

 

18

70 – 74

 

19

75 – 79

 

20

80 – 84

 

21

85 – 89

 

22

90 – 94

 

23

95 – 99

 

24

100 – 104

 

25

105 – 109

 

26

110 – 114

 

27

115 – 119

 

28

120 – 124

 

29

125 – 129

 

30

130 – 134

 

31

135 – 139

 

32

140 – 144

 

33

145 – 149

 

34

150 – 154

 

35

155 – 159

 

36

160 and over

 

37

 

 

2021/22 Appropriate Percentages (Cars registered on or after 06 April 2020)

(Based on the WLTP test for COemissions and not showing the 4% supplement):

 

COemissions (g/km)

Electric Range

Appropriate Percentage (%)

0

N/A

1

1 – 50

>130

1

1 – 50

70 – 129

4

1 – 50

40 – 69

7

1 – 50

30 – 39

11

1 – 50

<30

13

51 – 54

 

14

55 - 59

 

15

60 – 64

 

16

65 – 69

 

17

70 – 74

 

18

75 – 79

 

19

80 – 84

 

20

85 – 89

 

21

90 – 94

 

22

95 – 99

 

23

100 – 104

 

24

105 – 109

 

25

110 – 114

 

26

115 – 119

 

27

120 – 124

 

28

125 – 129

 

29

130 – 134

 

31

135 – 139

 

31

140 – 144

 

32

145 – 149

 

33

150 – 154

 

34

155 – 159

 

35

160 – 164

 

36

165 and over

 

37

 

 

Fuel Benefit 

With a comparison to the multiplier that applied in 2020/21:

 

Charge

2020/21

2021/22

 

£

£

Car fuel benefit charge multiplier

24,500

24,600

 

 

Vans

Van and Van Fuel Benefit

With a comparison to those that applied in 2020/21:

 

Charge

2020/21

2021/22

 

£

£

Van benefit charge

3,490

3,500

Van fuel benefit charge

666

669

 

 

Note: Section 155 of ITEPA states that the Van Benefit Charge (VBC) exemption for zero-emission vans is to be phased out on a tapered basis.  However, Budget 2020 (point 2.228) indicated that the UK Government would apply no Van Benefit Charge taxation on vans that are zero-emission from April 2021. 

t box >>

 

Address

Simply Business Solutions Ltd
33C Greensend House

Greens End Road

Meltham

Huddersfield

W Yorkshire

HD9 5NW

 

 

Tel:   01484 767960

 

Mob: 07931 938500

 

Making an appointment

You can contact us on the following telephone number if you have any queries or wish to make an appointment:

 

Tel: 01484 767960

 

 

Alternatively, please use our contact form.

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