Factsheet number: 5.6


Last Updated: 24 March 2021

Introduction

This factsheet contains a table of tax and national insurance rates for the tax year 2021/22.

If you use a payroll service, they will make the relevant calculations for you.

Earnings Threshold

£242.00 per week

Above this amount PAs begin paying income tax. (national insurance different – see below)

Above the tax-free limit, they pay 20% (basic rate) tax on their earnings.

Lower Earnings Limit (LEL)

£120.00 per week

This is the amount a PA needs to earn to be eligible for statutory sick pay and statutory maternity pay.

Between the LEL of £120 and the Primary Threshold of £184 PAs pay national insurance contributions at 0%.

Employers National Insurance Contributions Threshold (NIC)

 

 

170 p/wk

(Secondary threshold)

 

£184 p/wk

(Primary threshold)

Above this rate employers begin paying national insurance contributions at 13.8%.

Above this rate PAs begin paying national insurance contributions at 12%.

Statutory sick pay (SSP)

£96.35 per week

To be eligible for SSP the PA must earn above the LEL of £120.00 per week.

Statutory maternity pay (SMP)

£151.97 per week

For the first 6 weeks payments should be made at 90% of their average weekly earnings.

After 6 weeks they should be paid the lower of 90% of their average weekly earnings or £151.97 per week.