Below are all of the changes that affect your payroll processing for the 2021/22 tax year.
The emergency tax code for the 2021/22 tax year has been set as 1257L.
The following tax codes are uplifted:
The tables below show the bandwidths for the rest of the UK, Scotland and Wales.
| 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 |
| 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 |
| 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 |
| 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 |
These 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%.
| 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 |
| 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 |
The employment allowance for the 2021/22 tax year is £4,000.
The Apprenticeship Levy Allowance is set to £15,000 and the Apprenticeship Levy Rate is set to 0.5%.
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 |
The 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 |
An 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.
Additional amount payable to small employers will remain at 3%.
This table shows the student and postgraduate loan plan types, thresholds and rates for the 2021/22 tax year.
| 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 |
| Weekly threshold (£) | Monthly threshold (£) | Annual threshold (£) | Rate (%) |
| 403.84 | 1,750.00 | 21,000.00 | 6.00 |
The 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 |
| 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 |
The minimum contributions are as follows:
| 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 |