That was the Autumn budget 2021 – the Payroll impacts

So the Chancellor of the Exchequer presented the second budget of 2021 on Wednesday 27th October with much anticipation of the payroll and other impacting changes, some with immediate application, whilst other are set for April 2022 and some direction for the future.

What we already knew

Much to the annoyance of Parliament, the speaker criticised ministers for briefing the media on potential changes before announcements were made in the House of Commons.

Health and Social Care levy and National Insurance

We already know about the added 1.25% to National Insurance rates for April 2022, and the introduction of a separate levy from April 2023.

Accompanying documentation also confirmed a 3.1% rise to some of the National Insurance bands and thresholds with the weekly values being confirmed:

National Minimum and Living Wage

So early announcements confirmed some of the changes for April 2022 in uplifting the National Living wage higher than predictions to £9.50, and the move to align the aged 21-22 rate in preparation for the future extension of the NLW starting point.

And measures to increase the Apprenticeship rate to align with the lowest age related National Minimum Wage rate.

Income tax personal allowance

The March 2021 budget announced a freeze of the personal allowance until April 2026.

It has been confirmed that the annual allowance will stay at £12,570 per annum.

Income Tax

England and Northern Ireland

The tax rates and thresholds for England and Northern Ireland (sometimes referred to as the rest of the UK, have remained unchanged.


The Welsh Assembly have so far mirrored the rest of the U.K. tax rates. Confirmation for April 2022 is awaited.


The Scottish Parliament set the thresholds and rates for Scotland

Pensions tax relief

Following much public speculation, there is no immediate change to the pensions tax relief position with new top ups announced for low earner Net Pay Arrangement schemes from 2024.

PAYadvice.UK 27/10/2021

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