Intuit

Payroll Tax Year Changes 2020/2021

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.

Pension contributions

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
Weekly £120 £183 £169 £962
Fortnightly £240 £366 £338 £1924
Four-weekly £480 £731 £676 £3847
Monthly £520 £792 £732 £4167
Yearly £6,240 £9,500 £9,788 £50,000

Scottish Rate of Income Tax (SRIT)

Rates
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
Top rate 46% £15,000+

Employment Allowance

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 Payments

  • 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%