Year | 23 and over | 21 to 22 | 18 to 20 | Under 18 | Apprentice |
April 2021 | £8.91 | £8.36 | £6.56 | £4.62 | £4.30 |
Year | 25 and over | 21 to 24 | 18 to 20 | Under 18 | Apprentice |
April 2020 | £8.72 | £8.20 | £6.45 | £4.55 | £4.15 |
The new tax year begins on 6 April 2021 and as ever there are a number of changes of which employers must be aware. We have highlighted below some of the main changes taking place.
National Living Wage & National Minimum Wage Rates – 1 April 2021
Please note from 1 April 2021, The National Living Wage (NLW) will be the Statutory Minimum Wage for workers aged 23 and over. It currently applies to workers aged 25 and over. The tables below summarise both the new rates and the current rates per hour effective from 1 April 2021.
Year | 23 and over | 21 to 22 | 18 to 20 | Under 18 | Apprentice |
April 2021 | £8.91 | £8.36 | £6.56 | £4.62 | £4.30 |
Year | 25 and over | 21 to 24 | 18 to 20 | Under 18 | Apprentice |
April 2020 | £8.72 | £8.20 | £6.45 | £4.55 | £4.15 |
Employment Allowance
From 6 April 2021, the Government will continue the National Insurance (NI) Employment Allowance (EA) at £4,000. This means eligible businesses and charities will be able to claim the same reduction on their employers Class 1 NICs liability.
As last year, we will assess the eligibility of the business for EA and ask you to confirm you meet the eligibility criteria. We will then make an annual submission to HMRC in order to claim.
Auto-enrolment pensions
The percentage rates for both employer and employee pension contributions remains unchanged. The following table summarises the current rates.
The minimum the employer pays | The amount the employee pays | Total minimum contribution | |
Current | 3% | 5% | 8% |
Class 1 National Insurance Thresholds | 2021/22 | 2020/21 |
Lower earnings limit | £120 per week £520 per month £6,240 per year |
£120 per week £520 per month £6,240 per year |
Primary threshold | £184 per week £797 per month £9,568 per year |
£183 per week £792 per month £9,500 per year |
Secondary threshold | £170 per week £737 per month £8,840 per year |
£169 per week £732 per month £8,788 per year |
Upper secondary threshold (under 21) | £967 per week £4,189 per month £50,270 per year |
£962 per week £4,167 per month £50,000 per year |
Apprentice upper secondary threshold (apprentice under 25) | £967 per week £4,189 per month £50,270 per year |
£962 per week £4,167 per month £50,000 per year |
Upper earnings limit | £967 per week £4,189 per month £50,270 per year |
£962 per week £4,167 per month £50,000 per year |