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* |
|||
|
9,075 |
9,125 |
+50 |
|
3,510 |
3,530 |
+20 |
|
30,200 |
30,400 |
+200 |
|
Blind Person’s Allowance |
2,500 |
2,520 |
+20 |
|
Personal Savings Allowance |
|||
|
1,000 |
1,000 |
0 |
|
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:
|
£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 CO2 emissions 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 - 50 CO2 where the car is capable of traveling 130 miles or more in zero-emission mode (called the electric range)
- 1 – 50 CO2 where the electric range is between 70 and 129 miles
- 1 – 50 CO2 where the electric range is between 40 and 69 miles
- 1 – 50 CO2 where the electric range is between 30 and 39 miles
- 1 – 50 CO2 where 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 CO2 and 76 – 94 CO2 bands are split to create 9 bands:
- 51 – 54 CO2 emissions
- 55 – 59 CO2 emissions
- 60 – 64 CO2 emissions
- 65 – 69 CO2 emissions
- 70 – 74 CO2 emissions
- 75 – 79 CO2 emissions
- 80 – 84 CO2 emissions
- 85 – 89 CO2 emissions
- 90 – 94 CO2 emissions
The move to WLTP from NEDC created two company car tax regimes from April 2020:
- For cars registered before 06 April 2020 (using CO2 emissions measured under NEDC)
- For cars registered on or after 06 April 2020 (using CO2 emissions measured under WLTP)
However, two themes are common:
- The maximum Appropriate Percentage is 37% and
- 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 CO2 emissions and not showing the 4% supplement):
|
CO2 emissions (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 CO2 emissions and not showing the 4% supplement):
|
CO2 emissions (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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