News
Tax Rates and Allowances 2021/2022
27 - 04 - 2021
Income Tax Rates
Income Tax 2021/22 Rest of the UK (including Scottish saving and dividend income) from 06.04.21
|
Rate |
% |
Bandwidth per annum |
|
Basic |
20% |
£12,570 to £50,270 |
|
Higher |
40% |
£50,271 to £150,000 |
|
Additional |
45% |
£150,001 and above |
Income Tax 2021/22 for Scotland for non-savings and non-dividend income from 06.04.2021
|
Rate |
% |
Bandwidth per annum |
|
Starter |
19% |
£12,570 to £14,667 |
|
Scottish Basic |
20% |
£14,668 to £25,296 |
|
Scottish Intermediate |
21% |
£25,296 to £43,662 |
|
Scottish Higher |
41% |
£43,662 to £150,000 |
|
Scottish Additional |
46% |
£150,000 and above |
Income Tax 2021/22 for Wales from 06.04.21
|
Rate |
% |
Bandwidth per annum |
|
Basic |
20% |
£12,570 to £50,270 |
|
Higher |
40% |
£50,271 to £150,000 |
|
Additional |
45% |
£150,001 and above |
Your company as an employer must apply the new rates as of 06 April 2021.
What do I need to know?
The key points are:
Income Tax 2021/22 Rest of the UK (including Scottish saving and dividend income) from 06.04.21
|
Rate |
% |
Bandwidth per annum |
|
Basic |
20% |
£12,570 to £50,270 |
|
Higher |
40% |
£50,271 to £150,000 |
|
Additional |
45% |
£150,001 and above |
Income Tax 2021/22 for Scotland for non-savings and non-dividend income from 06.04.2021
|
Rate |
% |
Bandwidth per annum |
|
Starter |
19% |
£12,570 to £14,667 |
|
Scottish Basic |
20% |
£14,668 to £25,296 |
|
Scottish Intermediate |
21% |
£25,296 to £43,662 |
|
Scottish Higher |
41% |
£43,662 to £150,000 |
|
Scottish Additional |
46% |
£150,000 and above |
Income Tax 2021/22 for Wales from 06.04.21
|
Rate |
% |
Bandwidth per annum |
|
Basic |
20% |
£12,570 to £50,270 |
|
Higher |
40% |
£50,271 to £150,000 |
|
Additional |
45% |
£150,001 and above |
Class 1 National Insurance
|
Rate |
% |
Bandwidth per week |
|
Employees |
0% |
£120 to £184.00 |
|
Employees |
12% |
£184.01 to £967.00 |
|
Employees |
2% |
£967.01 and above |
|
|
|
|
|
Employers |
13.8% |
£170.01 and above |
What is the new personal tax allowance for 2019/20?
The Income Tax Personal Allowance for 2021/22 is £12,570.
Anyone earning more than £100,000 will see their Personal Allowance reduced by £1 for every £2 earned over £100,000.
What do I need to do?
Nothing, if you have instructed Foremans LLP to administer the payroll on behalf of your business, we will apply the new rates to the calculations on your behalf and amend your weekly salary to our advised level of £183 per week in order to minimise your tax liability whilst qualifying as making NI contributions.
If Foremans LLP does not process the payroll for your business you will need to apply the new rates as at 06 April 2021.
If you would like to discuss any of the issues noted above please contact us on:
01244 625 500 or 01978 364 000
contactus@foremansllp.com
Whilst all due care and attention has been taken in the preparation of these notes no liability can be accepted for any omission or item contained therein.
Foremans LLP
March 2021
