Following the Scottish budget, the HMRC have confirmed the tax allowances, rates and thresholds for 2021/2022 across the UK, these are effective from 6th April 2021.
The tables below provide both the current and the new tax year values.
England and Northern Ireland
Tax calculations for 6th April include changes announced by the government at the 2020 spending review. The rates and other thresholds (not included in the spending review) will continue to use the 2020/2021 information from 6th April 2021. Income tax rates are subject to confirmation at the Budget on 3rd March 2021.
Following the Scottish budget proposals, the following are effective from 6th April 2021.
Scottish Income Tax rates and thresholds are subject to parliamentary confirmation.
The following are effective from 6th April 2021.
Welsh Income Tax rates and thresholds are subject to parliamentary confirmation.
A note of caution
HMRC are indicating that once all rates and thresholds have been approved by the respective administrations, if there are further amendments, then they may need to carry out a later point recoding exercise to include relevant changes. They indicate that further information will be provided in due course.
Although very late in the day and the payroll software and service industry were facing difficulties with timing for systems development being added to payroll software solutions, it is fantastic that there is now certainty on the calculation position for the start of the new tax year effective 6th April 2021.
Will there be further announcements or adjustments? Maybe, at least we have the certainty that if there are added changes, those will be effective from a later point in time.
Further resources on changes for 2021/2022
PAYadvice.UK has a resource page containing details and links to the changes and significant payroll values:-
And we have updated our PAYadvice.UK Legislation Update 2021 (Version 21.4) covering the UK, Guernsey, Jersey and the Isle of Man.
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PAYadvice.UK 28/1/2020 updated 11/3/2021