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National Minimum Wage

Changes from April 2021 will be as follows: -

Year

25 & over

21 to 24

18 to 20

Under 18

Apprentice

April 2020 (current)

£8.72

£8.20

£6.45

£4.55

£4.15

Year

23 & Over

21 to 22

 

 

 

April 2021

£8.91

£8.36

£6.56

£4.62

£4.30

Note that the reference age has reduced from 25 to 23.

Income Tax and National Insurance

Income Tax thresholds as indicated below:

Personal allowance: £12,570

Standard Tax code: 1257L

Income tax: £1 – £37,700 @ basic rate 20%

                     £37,701 – 150,000 @ higher rate 40%

                     £150,001 and above @ additional rate 45%

Student Loan thresholds: Plan Type 1 £19,895 per annum

                                             Plan Type 2 £27,295

                                             Postgraduate Loan £21,000     

National insurance primary threshold: increase from £792 to £797 per month or £183 to £184 per week.

National insurance secondary threshold: increase from £732 to £737 per month or £169 to £170 per week

Statutory Payments

The earnings threshold for statutory payments remains at £120 per week.

Statutory maternity pay/statutory adoption pay: weekly rate increase from £151.20 to £151.97; the first 6 weeks will remain at 90% of the employee’s average weekly earnings

Statutory paternity pay/shared parental pay: weekly rate increase to £151.97

SSP: weekly rate increase from £95.85 to £96.35

Auto Enrolment

Minimum pension contributions remain at 3% employer and 5% employee

Employment Allowance

From April 2020, only businesses with an employer national insurance bill of £100,000 or less in the previous tax year will be eligible to claim Employment Allowance.

For businesses who are eligible to claim it, the Employment Allowance is £4000 for the year.

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