As an employer, it is important to stay on top of all the changes that come into effect every April. We've put together a summary of the key facts and figures.
The pension contributions will remain at 3% and 5% for employer and employee contributions respectively.
Auto Enrolment thresholds
The upper and lower limits for Auto Enrolment are increasing in line with National Insurance thresholds.
The earnings trigger has increased to £9,500.
Personal tax allowance
The personal allowance remains at £12,500.
Changes to NI thresholds
|LEL||PT||ST||UEL / AUST / UST|
Scottish Rate of Income Tax (SRIT)
|Starter rate||19%||£1 - £2,085|
|Basic rate||20%||£2,086 - £12,658|
|Intermediate rate||21%||£12,659 - £30,930|
|Higher rate||41%||£30,931 - £150,000|
As of 6th of April, the amount businesses can reclaim in National Insurance Contributions (NICs) has increased from £3,000 to £4,000.
In order to be eligible for Employment Allowance businesses must have had employer NIC liabilities less than £100,000 in the prior tax year.
- Statutory Sick Pay (SSP) from £94.25 to £95.85
- Statutory Maternity Pay (SMP) from £148.68 to £151.20
- Statutory Adoption Pay (SAP) from £148.68 to £151.20
- Statutory Paternity Pay (SPP) from £148.68 to £151.20
- Shared Parental Pay (ShPP) from £148.68 to £151.20
Student & Postgraduate Loans
The Government has increased both Plan 1 & Plan 2 Student Loan repayment thresholds for 2020/21. The Rate of deduction has also increased from 6% to 9%.
- Plan 1 = £19,390 at 9%
- Plan 2 = £26,575 at 9%
- Postgraduate loans: £21,000 at 6%