[29.03.21]

There are a number of changes for the forthcoming tax year, which begins on 6^th April 2021.  These include:

National Living Wage and the National Minimum Wage – From 6^th April the age by which the National Living Wage kicks in, decreases from 25 to 23 years old.  There are increases to wage levels:

• National Living Wage (aged 23 and over) – £8.91
• National Minimum Wage (aged 21 and 22) – £8.36
• National Minimum Wage (aged 18 – 20) – £6.56
• National Minimum Wage (under 18s) – £4.62
• Apprentice rate for under 19s, or those older but in their first year of their apprenticeship – £4.30

Income Tax Personal Allowance will increase from 6^th April, and will then be frozen until April 2026:

• Personal Allowance, ie. 0% tax rate – £12,570
• Basic Rate, ie. 20% tax rate – £12,571 – £50,270
• Higher Rate, ie. 40% tax rate – £50,271 – £150,000
• Additional Rate, ie. 45% tax rate – over £150,000

National Insurance Contributions – the Class 1 NICs (Primary Threshold/Lower Profits Limit) will increase to £9,568; and the Upper Earnings Limit will rise to £50,270.

Castletons Accountants