6 Autumn Budget 2021
National Living Wage (NLW) and National MinimumWage (NMW)
Power to make temporary modifications of taxation of employment income This will allow HM Treasury, under ministerial direction, to make regulations to make temporary modifications to existing legislation for a period of up to two tax years in the event of a disaster or emergency of national significance as determined by HM Treasury. This will enable the government to support taxpayers, for example by: • exempting benefits in kind of a specified description from income tax where appropriate • changing the qualifying conditions for exemptions on benefits in kind • exempting specified reimbursements from the charge to income tax • providing relief for specified expenses. This will have effect on and after the date of Royal Assent to the Finance Bill 2021-22.
Following the recommendations of the independent Low Pay Commission, the government will increase the NLW for individuals aged 23 and over by 6.6% from 1 April 2022. The government has also accepted the recommendations for the other NMW rates to be increased. From 1 April 2022, the hourly rates of NLW and NMWwill be: • £9.50 for those 23 years old and over • £9.18 for 21-22 year olds • £6.83 for 18-20 year olds • £4.81 for 16-17 year olds • £4.81 apprentice rate for apprentices under 19, and those 19 and over in their first year of apprenticeship. Comment In total, the annual gross earnings of a full-time worker on the NLW will have increased by over £5,000 since its introduction in April 2016.
Made with FlippingBook Learn more on our blog