26 November 2020
Within the Spending Review accompanying documents, it has been confirmed that both the Income Tax Personal Allowance and Higher Rate Threshold will increase in line with the Consumer Price Index (CPI) figure for September 2020. This figure will also be used as the basis for determining what the National Insurance (NI) limits and thresholds, and the rates of class 2 & 3 NI contributions will be for tax year 2021-22.
The CPI figure for September 2020 was 0.5% but we await to see what the official thresholds and limits will be, to be laid out by the Government.
This information is welcomed as speculation was rife that there would be no increase to tax and NI thresholds, and also to the NLW and NMW rates, but it has been confirmed that they will also increase for pay reference periods that start on or after 1 April 2020.
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Income Tax receipts for 2019-20 published 1 December 2020
HMRC has published Income Tax receipts statistics for the tax year 2019-20.
The key findings are as follows:
• The total net Income Tax receipts for 2019-20 are estimated at £193.2 billion – this is 1.16% higher than those recorded for tax year 2018-19 • Pay As You Earn (PAYE) Income Tax receipts for 2019-20 are estimated at £164.8 billion – this is a 1.81% increase from the preceding year • Self-Assessment Income Tax receipts for tax year 2019-20 are estimated at £32.2 billion – this is 21.1% higher than the previous year • Income Tax repayments for 2019-20 are estimated as being £7.7 billion
Further in-depth information is provided, along with statistical tables online.
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Payroll Software Updates Statutory Pay and Leave
Furloughed employees, intending to take paid parental or adoption leave, are entitled to statutory pay based on usual earnings 27 April 2020
Any workers who are planning to take paid parental or adoption leave will be entitled to pay calculated based on their normal earnings, as opposed to their pay during furlough.
The Department for Business, Energy and Industrial Strategy (BEIS) and the Department for Work and Pensions (DWP) confirmed in a press release that full earnings will be used for Maternity Pay, Shared Parental Pay, Parental
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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