National Minimum Wage
Changes from April 2022 will be as follows: –
Year | 23 & over | 21 to 22 | 18 to 20 | Under 18 | Apprentice |
April 2021 (current) | £8.91 | £8.36 | £6.56 | £4.62 | £4.30 |
Year | 23 & Over | 21 to 22 | 18 to 20 | Under 18 | Apprentice |
April 2022 | £9.50 | £9.18 | £6.83 | £4.81 | £4.81 |
Income Tax and National Insurance
Income Tax thresholds as indicated below:
Personal allowance: £12,570
Standard Tax code: 1257L
Income tax:
£12,571 – £50,270 @ basic rate 20%
£50,271 – 150,000 @ higher rate 40%
£150,001 and above @ additional rate 45%
Student Loan thresholds:
Plan Type 1 £1,682.91 per month
Plan Type 2 £2,274.58 per month
Plan Type 4 £2,114.58 per month
Postgraduate Loan £1,750.00 per month
National insurance primary threshold: increase from £797 to £823 per month or £184 to £190 per week.
National insurance secondary threshold: increase from £737 to £758 per month or £170 to £175 per week
Statutory Payments
The earnings threshold for statutory payments increases from £120 per week to £123 per week
Statutory maternity pay/statutory adoption pay: weekly rate increase from £151.97 to £156.66; 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 £156.66
SSP: weekly rate increase from £96.35 to £99.35
Auto Enrolment
The Automatic Enrolment earnings threshold will remain at £10,000. The lower earnings limit of the qualifying earnings band will remain at £6,240 and the upper earnings limit of the qualifying earnings band will remain at £50,270.
Minimum pension contributions remain at 3% employer and 5% employee
Employment Allowance
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.
