The Chartered Institute of Payroll Professionals
News On Line
General Employment News
Happy new tax year day! 6 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%: Higher rate – 40%: Additional rate – 45%
£1 to £37,700
£37,701 to £150,000
• •
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%): Basic rate (20%):
£1 to £2,097
• • • • •
£2,098 to £12,726 £12,727 to £31,092 £31,093 to £150,000
Intermediate rate (21%)
Higher rate (41%): 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)
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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