Tax and National Insurance rates 2021 - 2022 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.