Are you payroll-ready for the new tax year?
A Blog by Nigel Stapleton, Head of CBR Business Solutions’ Payroll Team
Another PAYE year is nearly complete and a new tax year (2021/2022) year end is almost upon us. You will have been busy managing your year-end duties such as advising HMRC that your returns are complete and issuing those people employed at 5th April with a P60 for the year, and there are a few other things as an employer you need to be aware of and for which you may need to take appropriate action.
National Minimum Wage and National Living Wage rates: Increase and adult age threshold change from April 2021
From April 2021 the national minimum and living wages will increase as follows. Please note in particular that the upper age adult rate threshold changes from 25 to 23 which may affect your employees when compared to the April 2020 rates:
April 2021 rates and thresholds
- 23 and over: £8.91
- 21 to 22: £8.36
- 18 to 20: £6.56
- Under 18: £4.62
- Apprentice: £4.30
April 2020 rates and thresholds
- 25 and over £8.72
- 21 to 24 £8.20
- 18 to 20 £6.45
- Under 18 £4.55
- Apprentice £4.15
Please see full details and further guidance at: https://www.gov.uk/national-minimum-wage-rates
Since April 2014 employers have been able, subject to meeting criteria laid down by the government, to claim Employment Allowance. The rate for the upcoming tax year (2021/2022) is £4,000.00.
Please see full details and further guidance at: https://www.gov.uk/claim-employment-allowance
Prior to April 2020 your eligibility to claim was carried forward from year to year, however this ceased at the end of March 2020 and from then onwards employers must declare their eligibility at the start of each PAYE year in April.
If you are already a CBR Business Solutions payroll customer you will have received this notification by email. If you are not, but would be interested to find out more about our payroll service then please contact Nigel Stapleton to find out more.