Statutory Rates: Tax Thresholds, Rates and Codes for 2021/22

Statutory Rates: Tax Thresholds, Rates and Codes for 2021/22

As part of our commitment to bring the latest updates from the Government ahead of the 2021/22 tax year commencing, an update has been provided below on the tax thresholds, rates and codes. The tax codes are set in place to indicate the number of deductions from each employee based on their personal allowance threshold.

 

All tax rates and thresholds are subject to parliamentary confirmation.

 

England and Northern Ireland

 

PAYE Tax rates and thresholds 2021 to 2022
 Employee personal allowance

£242 per week

£1,048 per month

£12,570 per year

 English and Northern Irish basic tax rate

20% on annual earnings above the PAYE tax threshold and up to £37,700
English and Northern Irish higher tax rate 40% on annual earnings from £37,701 to £150,000
English and Northern Irish additional tax rate 45% on annual earnings above £150,000

 

Scotland

 

 

PAYE Tax rates and thresholds

 

2021 to 2022

Employee personal allowance

£242 per week

£1,048 per month

£12,570 per year

Scottish starter tax rate

19% on annual earnings above the PAYE tax threshold and up to £2,097

Scottish basic tax rate

20% on annual earnings from £2,098 to £12,726

Scottish intermediate tax rate

21% on annual earnings from £12,727 to £31,092

Scottish higher tax rate

41% on annual earnings from £31,093 to £150,000

Scottish top tax rate

46% on annual earnings above £150,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wales

 

PAYE Tax rates and thresholds

2021 to 2022
Employee personal allowance

£242 per week

£1,048 per month

£12,570 per year

Welsh basic tax rate 20% on annual earnings above the PAYE tax threshold and up to £37,700
Welsh higher tax rate 40% on annual earnings from £37,701 to £150,000
Welsh additional tax rate

45% on annual earnings above £150,000

 

Emergency Tax Codes

The emergency tax codes to be used for the 2021/22 tax year, beginning 6th April are as follows:

  • 1257L W1
  • 1257L M1
  • 1257L X

 

For more information on the upcoming changes to legislation for the 2021/22 tax year, you can visit the HMRC website. 

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