National Insurance & Tax Information
From April 2021
| £8.91 | National Living Wage for workers aged 23 and over |
| £8.36 | for workers 21 to 22 years of age |
| £6.56 | for 18 – 20 year olds |
| £4.62 | under 18 |
| £4.30 | Apprentice Rate |
National Minimum Wage and National Living Wage rates – GOV.UK (www.gov.uk)
For the 2021 / 22 Tax Year
| Statutory Sick Pay (SSP) | |
| Minimum weekly earnings to qualify | £120.00 |
| Weekly rate of SSP | £96.35 |
SMP is now paid for up to 39 weeks within this period an employee may have 10 keep in touch days (KIT) which will not effect the payment of SMP
| Ordinary Statutory Paternity Pay (OSPP) | |
| Minimum weekly earnings | £120.00 |
| Weekly rate for up to 2 weeks | is the lesser of £151.97 or 90% of average weekly earnings |
| Statutory Adoption Pay (SAP) | |
| Minimum weekly earnings | £120.00 |
| Weekly rate for up to 39 weeks | Is now in line with SMP |
All employers are entitled to recover 92% of the SMP/OSPP/SAP/ShPP they pay.
If you qualify for Small Employers Relief (annual liability for National Insurance less than £45,000) you are entitled to recover 103% of the SMP/OSPP/SAP/ShPP you pay.
See here for further details and up to date information
From April 2021
Plan 1 Student Loans
| Student Loan Repayments are 9% of earnings above: | £19 895 per annum |
| £1 657.91 per month | |
| £382.59 per week |
Plan 2 Student Loans
| Student Loan Repayments are 9% of earnings above: | £27 295 per annum |
| £2 274.58 per month | |
| £524.90 per week |
Plan 4 Student Loans
| Student Loan Repayments are 9% of earnings above: | £25 000 per annum |
| £2 083.33 per month | |
| £480.76 per week |
Post Graduate Loans
| Student Loan Repayments are 6% of earnings above: | £21 000 per annum |
| £1 750 per month | |
| £403.84 per week |
Rates and thresholds for employers 2021 to 2022 – GOV.UK (www.gov.uk)
England and Northern Ireland
| Allowances | 2021 / 22 tax year |
| Personal Allowance | £12 570 per year |
| Tax Rates | Taxable Income | |
| 20% | Up to £37 700 | Basic Rate |
| 40% | over £37 701 up to £150,000 | Higher Rate |
| 45% | over £150,000 | Additional Rate |
Higher rate threshold = £50 270
Scotland
| Allowances | 2021 / 22 tax year |
| Personal Allowance | £12 570 per year |
| Tax Rates | Taxable Income | |
| 19% | Up to £2 097 | Scottish Starter Rate |
| 20% | £2 098 to £12 726 | Scottish Basic Rate |
| 21% | £12 727 to £31 092 | Scottish Intermediate Rate |
| 41% | £31 093 to £150 000 | Scottish Higher Rate |
| 46% | over £150,001 | Scottish Additional Rate |
Higher rate threshold = £43 662
Wales
| Allowances | 2021 / 22 tax year |
| Personal Allowance | £12 570 per year |
| Tax Rates | Taxable Income | |
| 20% | Up to £37 700 | Welsh Basic Rate |
| 40% | over £37 701 up to £150,000 | Welsh Higher Rate |
| 45% | over £150,001 | Welsh Additional Rate |
Higher rate threshold = £50 270
Please see here for further details.
National Insurance for 2021 / 2022
Employees
| Lower Earnings Limit | Primary Threshold (12% contributions) |
Upper Earnings Limit (2% contributions) |
|
| Weekly | £120 | £184 | £967 |
| Monthly | £520 | £797 | £4 189 |
| Yearly | £6 240 | £9 568 | £50 270 |
| NI Category A | Most Employees |
| NI Category C | Employees over the state pension age, no employee contributions |
| NI Category H | Apprentice under the age of 25 |
| NI Category M | Employees under 21 |
| NI Category X | Employees don’t have to pay National Insurance |
These are the commonly used categories, for more information visit the HMRC website
Employers
| Lower Earnings Limit | Secondary Threshold (13.8%) |
Upper Secondary Threshold, Apprentice Upper Secondary Threshold (13.8%) |
Upper Earnings Limit (13.8%) |
|
| Weekly | £120 | £170 | £967 | £967 |
| Monthly | £520 | £737 | £4 189 | £4 189 |
| Yearly | £6 240 | £8 840 | £50 270 | £50 270 |
| NI Category A | Employers contribute 13.8% above the Secondary Threshold |
| NI Category C | Employers contribute 13.8% above the Secondary Threshold |
| NI Category M | No Employer contributions until the Upper Secondary Threshold |
| Ni Category H | No Employer contributions until the Apprentice Upper Secondary Threshold |
| NI Category X | No Contributions |
The bands and rates are for the most commonly used categories, please visit the HMRC website for full details
Payroll Options have put this very simple guide together to give an indication of bands and contribution rates. This should not be relied upon for calculations and for further guidance please contact us.