Below are all of the changes that affect your payroll processing for the 2021/22 tax year. PAYETax code changesThe emergency tax code for the 2021/22 tax year has been set as 1257L. The following tax codes are uplifted: - Tax codes suffixed with an L: The numeric part of the tax code increases by seven.
- Tax codes suffixed with an M: The numeric part of the tax code increases by eight.
- Tax codes suffixed with an N: The numeric part of the tax code increases by six.
The tables below show the bandwidths for the rest of the UK, Scotland and Wales. UK Bandwidths & Rates| From (£) | To (£) | Rate (%) | Band | | 1.00 | 37,700.00 | 20.00 | Basic rate | | 37,700.01 | 150,000.00 | 40.00 | Higher rate | | 150,000.01 | excess | 45.00 | Additional rate |
Scottish Bandwidths & Rates| From (£) | To (£) | Rate (%) | Band | | 0.01 | 2,097.00 | 19.00 | Starter rate | | 2,097.01 | 12,726.00 | 20.00 | Basic rate | | 12,726.01 | 31,902.00 | 21.00 | Intermediate rate | | 31,902.01 | 150,000.00 | 41.00 | Higher rate | | 150,000.01 | excess | 46.00 | Top rate |
Welsh Bandwidths & Rates| From (£) | To (£) | Rate (%) | Band | | 0.01 | 37,700.00 | 20.00 | Basic rate | | 37,700.01 | 150,000.00 | 40.00 | Higher rate | | 150,000.01 | excess | 45.00 | Additional rate |
Tax relief for childcare
| Basic Rate (£) | High Rate (£) | Higher Rate (£) | | Weekly | 55.00 | 28.00 | 25.00 | | Monthly | 243.00 | 124.00 | 110.00 | | Annually | 2915.00 | 1484.00 | 1325.00 |
National InsuranceThese are the NI bands & rates for the 2021/22 tax year. The rate for Class 1A in the 2021/22 tax year is 13.80%. Earnings bands
| Weekly (£) | Monthly (£) | Yearly (£) | | Lower Earnings Limit (LEL) | 120.00 | 520.00 | 6,240.00 | | Primary Threshold (PT) | 184.00 | 797.00 | 9,568.00 | | Secondary Threshold (ST) | 170.00 | 737.00 | 8,840.00 | | Upper Earnings Limit (UEL) | 967.00 | 4189.00 | 50,270.00 | | Upper Secondary Threshold (UST) | 967.00 | 4189.00 | 50,270.00 | | Apprentice Upper Secondary Threshold (AUST) | 967.00 | 4189.00 | 50,270.00 |
Rates
| Employee Rate (%) | Employer Rate (%) | | £0.00 up to LEL | 0.00 | 0.00 | | LEL up to PT | 0.00 | 0.00 | | PT to ST | 12.00 | 0.00 | | ST up to UEL/UST/AUST | 12.00 | 13.80 | | Excess of UEL/UST/AUST | 2.00 | 13.80 |
Employment allowanceThe employment allowance for the 2021/22 tax year is £4,000. Apprenticeship LevyThe Apprenticeship Levy Allowance is set to £15,000 and the Apprenticeship Levy Rate is set to 0.5%. Statutory sick pay (SSP)Employees that are on weekly earnings greater than or equal to the LEL are entitled to a weekly SSP rate of £96.35. The following table shows the daily rate of SSP by the amount of working days in a week. | Unrounded daily rates | Number of working days in week | 1 day to pay | 2 days to pay | 3 days to pay | 4 days to pay | 5 days to pay | 6 days to pay | 7 days to pay |
|---|
| £13.7642 | 7 | £13.77 | £27.53 | £41.30 | £55.06 | £68.83 | £82.59 | £96.35 | | £16.0583 | 6 | £16.06 | £32.12 | £48.18 | £64.24 | £80.30 | £96.35 |
| | £19.2700 | 5 | £19.27 | £38.54 | £57.81 | £77.08 | £96.35 |
|
| | £24.0875 | 4 | £24.09 | £48.18 | £72.27 | £96.35 |
|
|
| | £32.1166 | 3 | £32.12 | £64.24 | £96.35 |
|
|
|
| | £48.1750 | 2 | £48.18 | £96.35 |
|
|
|
|
| | £96.3500 | 1 | £96.35 |
|
|
|
|
|
|
Parental pay and leaveThe following | Parental leave type | Higher Rate (%) | Minimum weekly earnings (£) | The standard rate is the lesser of | Number of weeks paid at higher rate | Number of weeks paid at lower rate | | Statutory maternity pay (SMP) | 90.00 | 120.00 | £151.97 or 90% | 6 | 33 | | Statutory adoption pay (SAP) | 90.00 | 120.00 | £151.97 or 90% | 6 | 33 | | Statutory paternity pay (SPP) | N/A | 120.00 | £151.97 or 90% | N/A | 2 | | Shared parental pay (ShPP) | N/A | 120.00 | £151.97 or 90% | N/A | 37 | | Parental bereavement | N/A | 120.00 | £151.97 or 90% | N/A | 2 |
Keep in touch (KIT) /Split DaysAn employee can use up to 10 KIT days during the maternity / adoption leave period. An employee can use up to 20 SPLIT days during the shared parental leave period. Small Employers' Compensation RateAdditional amount payable to small employers will remain at 3%. Student / Postgraduate LoansThis table shows the student and postgraduate loan plan types, thresholds and rates for the 2021/22 tax year. Student Loan| Plan Type | Weekly threshold (£) | Monthly threshold (£) | Annual threshold (£) | Rate (%) | | One | 382.59 | 1,657.91 | 19,895.00 | 9.00 | | Two | 524.90 | 2,274.58 | 27,295.00 | 9.00 | | Four | 480.76 | 2,083.33 | 25,000.00 | 9.00 |
Postgraduate loan| Weekly threshold (£) | Monthly threshold (£) | Annual threshold (£) | Rate (%) | | 403.84 | 1,750.00 | 21,000.00 | 6.00 |
National minimum / living wage ratesThe following rates are effective from 1 April 2021. | Age | Hourly Rate (£) | | 23 and older **new rate from April 2021** | 8.91 | | 21 - 22 | 8.36 | | 18 - 20 | 6.56 | | 16 - 17 | 4.62 | | Apprenticeship | 4.30 |
Automatic enrolmentAutomatic enrolment bands| Pay reference period | Lower level of qualifying earnings (£) | Earnings trigger for automatic enrolment (£) | Qualifying earnings upper limit (£) | | One week | 120.00 | 192.00 | 967.00 | | Fortnight | 240.00 | 384.00 | 1,934.00 | | Four weeks | 480.00 | 768.00 | 3,867.00 | | One month | 520.00 | 833.00 | 4,189.00 | | Annual | 6,240.00 | 10,000.00 | 50,270.00 |
Pension contributionsThe minimum contributions are as follows: - Employer minimum contribution: 3%
- Total minimum contribution: 8%
NHS bands| Tier | Pensionable pay from (£) | Pensionable pay to (£) | Employee contribution rate (%) | Employer contribution rate (%) | | 1 | 0.00 | 15,431.99 | 5.00 | 14.38 | | 2 | 15,432.00 | 21,477.99 | 5.60 | 14.38 | | 3 | 21,478.00 | 26,823.99 | 7.10 | 14.38 | | 4 | 26,824.00 | 47,845.99 | 9.30 | 14.38 | | 5 | 47,846.00 | 70,630.99 | 12.50 | 14.38 | | 6 | 70,631.00 | 111,367.99 | 13.50 | 14.38 | | 7 | 111,377.00 | And above | 14.50 | 14.38 |
[BCB:92:Limitless - 50 Payroll - PYE:ECB] |