UK Payroll Facts 2021/22

Standard tax code is 1257L. This means £12,570 annual earnings allowance.

Tax Bands & Rates

2021-22
Bandwidths
Tax Rate
Taxable earnings
0-£37,700
20%
Taxable earnings
£37,701 – £100,000
40%
Taxable earnings
£100,000 – £150,000
40% reducing personal allowances
Taxable earnings over
£150,000
45% no allowances

Statutory Payments

Statutory Sick Pay up to 28 Weeks (no reimbursement)
£96.35 per week, £19.27 per day (5 day week)
Statutory Maternity/Adoption Pay paid for 39 Weeks
First 6 weeks 90% of average weekly earnings
then 33 weeks at £151.97 or average weekly earnings if less
Statutory Paternity Pay 1 or 2 consecutive weeks
£151.97 or average weekly earnings if less
Small Employer Threshold
Less than £45,000 of previous year’s NIC
Recover 100% plus 3% compensation
Large Employer
Only on SMP/SPP/SAP
92% recovery

National Minimum Wage

Rate Per Hour
April-2020
April-2021
age 16-17
£4.55
£4.62
age 18-20
£6.45
£6.56
age 21 to 22
£8.20
£8.36
Apprentice
4.15
4.30

National Living Wage

Rate Per Hour
£8.72
£8.91

National Insurance Earnings

Per Week
Per Month
Per Annum
Employees
Employers
Lower Earnings Limit (LEL)
£120
£520
£6,240
Nil
Nil
Primary Threshold (PT)
£184
£797
£9,568
12%
13.8%
Secondary Threshold (ST)
£170
£737
£8,840
0%
13.8%
Upper Secondary Threshold (UST)
£967
£4,189
£50,270
12%
13.8%
Above Upper Earnings Limit (UEL)
£967
£4,189
£50,270
2%
13.8%

Less up to £4000 Annual Employment Allowance (if total NIC for 2020-21 under £100,000)

Other rates

Statutory Redundancy maximum 20 weeks
£538 per week
Student Loans:
Plan 1 earnings above £19,390
9% deduction
Plan 2 earnings above £26,575
9% deduction
Plan 4 earnings above £25,000
9% deduction
Postgraduate loan(PGL) earnings above £21,000
6% deduction
Childcare Vouchers (Salary Sacrifice)
Maximum £243 per month (£55 per week) 20%
Maximum £124 per month (£28 per week) 40%
Maximum £97 per month (£22 per week) 45%

Employee Vehicle Mileage Payments for business travel

Motor Cars and Vans
First 10,000 business miles*
45p per mile
Over 10,000 business miles
25p per mile
Motorcycles
24p per mile
Cycles
20p per mile

* For National Insurance purposes, the higher rate applies to all miles, not only the first 10,000.

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