Here are the changes that will come into effect in April 2021:
National Minimum Wage and National Living Wage
Changes will come into effect on 1st April. Note the different age bands for rates in 2021/22.
| 2021/22 | 2020/21 | |
|---|---|---|
| Employees aged under 18: NMW | £4.62 | £4.55 |
| Employees aged 18-20: NMW | £6.56 | £6.45 |
| Employees aged 23 and over: NLW | £8.91 | N/A |
| Employees aged 25 and over: NLW | N/A | £8.72 |
| Employees aged 21-24: NMW | N/A | £8.20 |
| Employees aged 21-22: NMW | £8.36 | N/A |
England, Northern Ireland and Wales
Changes will come into effect on 6th April 2021.
| 2021/22 | 2020/21 | |
|---|---|---|
| Personal allowance | £12,570 | £12,500 |
| Employee’s NI becomes due at | £9,568 | £9,500 |
| Employer’s NI becomes due at | £8,840 | £8,788 |
| Higher rate tax becomes due at | £50,270 | £50,000 |
| Class 2 NI becomes due when profits exceed | £6,515 | £6,475 |
| Class 2 NI per week | £3.05 | £3.05 |
| Class 4 NI becomes due when profits exceed | £9,568 | £9,500 |
Scottish tax rates and bands
Changes will come into effect on 6th April 2021.
| 2021/22 | 2020/21 | |
|---|---|---|
| Personal allowance | £0 – £12,570 | £0 – £12,500 |
| Starter rate 19% | £12,571 – £14,667 | £12,501 – £14,585 |
| Basic rate 20% | £14,668 – £25,296 | £14,586 – £25,158 |
| Intermediate rate 21% | £25,297 – £43,662 | £25,159 – £43,430 |
| Higher rate 41% | £43,663 – £150,000 | £43,431 – £150,000 |
| Top rate 46% | Over £150,000 | Over £150,000 |
Student Loan repayment thresholds and new Scottish student loan plan
Changes will come into effect on 6th April 2021.
| 2021/22 | 2020/21 | |
|---|---|---|
| Undergraduate loan: plan 1 | £19,895 | £19,390 |
| Undergraduate loan: plan 2 | £27,295 | £26,575 |
| Scottish student loan: plan 4 | £25,000 | N/A |
| Postgraduate loan | £21,000 | £21,000 |
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