The employment law changes from April 2021 that will affect your payroll are as follows:
Annual free pay allowance increasing from £12500 to £12570 meaning the standard tax code will be 1257L.
The 20% basic rate for tax banding increases from £37500 to £37700.
The National Insurance weekly earnings limit for employees is £184.00 and £170 for employers.
The National Insurance monthly earnings limit for employees is £797.00 and £737 for employers.
National Minimum Wage Rates:
Under 18 year olds increases from £4.55 to £4.62 per hour
18-20 year olds increases from £6.45 to £6.56 per hour
21-22 year olds increases from £8.20 to £8.36 per hour
23-24 year olds increases from £8.20 to £8.91 per hour
The National Living Wage from £8.72 (over 25s) to £8.91 (over 23s)
Statutory Rates:
Statutory Sick Pay increases to £96.35 per week
Statutory Maternity/Adoption/Paternity Pay increases to £151.97 per week
