All change – What do we know about HMRC’s Changes for the new tax year ?
So he has had is big red suitcase out again: here are some changes that may affect you for the new Tax year (which starts 6th April 2021)
The National Living wage now applies to 23 and 24 year olds
As of April 2021, the following will apply:
| National Living Wage | People aged over 23 | £8.91 |
| National Minimum Wage | People aged 21- 22 | £8.36 |
| National Minimum Wage | People aged 18 – 20 | £6.56 |
| National Minimum Wage | People under 18 | £4.62 |
| Apprentice rate | Under 19 or in Y1 of scheme | £4.30 |
In Wales, Personal Allowances have changed slightly
- First £12570 of annual earnings is tax free
- Basic rate of 20% is charged on annual earnings between £12,571 and £37,700
- Higher rate of 40% tax is charged on annual earnings between £37,701 and £150,000
- Additional tax rate of 45% is charged on annual earnings above £150,000
IR35 – eek – see our other blog here ir35-in-out-shake-it-all-about/
If you would like any additional information on rates such as National insurance, for the 2021/22 tax year please head to https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2021-to-2022
If payroll matters really aren’t your thing and you have any queries about AWR, Holiday accruals, Tax codes etc, do give Team Sunny a shout and we will do our best to help you.