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.