![]() Summary of impacts Exchequer impact (£million) 2020 to 2021 The National Insurance contributions Upper Earnings Limit and Upper Profits Limit will be legislated for in the annual setting of National Insurance contributions rates, limits and thresholds as standard. The National Insurance contributions Upper Earnings Limit and Upper Profits Limit will remain aligned to the higher rate threshold at £50,270 for: The following table sets out the thresholds to include the changes from this measure. These thresholds will remain set at £12,570 and £37,7 to 2024, 2024 to 2025, and 2025 to 2026, and the legislative default is that they would rise in line with CPI thereafter. Legislation will be introduced in Finance Bill 2021 to set the Personal Allowance for 2022 to 2023 at £12,570, and the basic rate limit for 2022 to 2023 at £37,700. The National Insurance contributions Upper Earnings Limit and Upper Profits Limit are set at £50,2 to 2022. As a result, the higher rate threshold will be £50,270 in 2021 to 2022. The higher rate threshold is equal to the Personal Allowance added to the basic rate limit. The Personal Allowance is set at £12,5 to 2022, and the basic rate limit is set at £37,7 to 2022. ![]() The basic rate limit is also indexed with CPI, under section 21 of the Income Tax Act 2007. The Personal Allowance is indexed with CPI under section 57 of the Income Tax Act 2007. The measure will have effect on and after 6 April 2022. Changes to the National Insurance contributions Upper Earnings Limit and Upper Profits Limit will apply to the whole of the UK. Since April 2017, the Scottish Parliament sets the basic rate limit and higher rate threshold for non-savings, non-dividend income for Scotland. This measure was announced at Budget 2021.Ĭhanges to the Personal Allowance will apply to the whole of the UK.Ĭhanges to the basic rate limit, and higher rate threshold, will apply to non-savings and non-dividend income in England, Wales and Northern Ireland and to savings and dividend income in the UK. ![]() This policy takes steps to make sure the sustainability of the public finances and fund our vital public services in a fair and sustainable way. The National Insurance contributions Upper Earnings Limit and Upper Profits Limit will remain aligned to the higher rate threshold at £50,270 for these years.įrom 2026 to 2027 onwards, existing legislation means that the default is for the Personal Allowance and basic rate limit to be indexed with Consumer Price Index ( CPI). The higher rate threshold (the Personal Allowance added to the basic rate limit) will be £50,270 for these years. It will set the Personal Allowance at £12,570, and the basic rate limit at £37,700 for tax years: This measure will maintain the Personal Allowance and basic rate limit at their 2021 to 2022 levels up to and including 2025 to 2026. Income taxpayers, National Insurance contributions payers, employers and pension providers. ![]()
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