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 |
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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.