The 2021-22 tax year is starting on the 6th of April 2021. See below an update on the key changes regarding workplace pensions:
Earnings thresholds
The threshold change will apply to schemes where contributions are calculated on a Qualifying Earnings basis.
The Upper level of qualifying earnings will increase from £50,000 to £50,270 per year. This means that contributions will be calculated on the worker’s gross annual earnings that fall between £6,240 and £50,270, known as “qualifying earnings”.
Husky will apply an automatic update to ensure all our clients are compliant with the regulation changes.
Minimum contributions
There will be no changes to the minimum contribution levels.
Lifetime Allowance
The Lifetime Allowance will remain at its current level of £1,073,100 for the 2021-22 tax year.
The Lifetime Allowance is the maximum amount that individuals can save into a pension while still enjoying the full tax benefits.
Other changes
NI Thresholds
The Class 1 National Insurance thresholds will change for the 2021/22 tax year. The main changes are:
- Primary Threshold: Moving from £9,500 a year in 2020/2021 to £9,568
- Secondary Threshold: Moving from £8,788 per year in 2020/2021 to £8,840
- Upper Earnings Limited: Moving from £50,000 in 2020/2021 to £50,270
Income tax
The main changes are:
- Personal income tax allowance will move from £12,500 to £12,570.
- Higher rate income tax threshold is moving from £50,00 to £50,270.
Minimum wage
The National Living Wage will increase by 2.2% from £8.72 to £8.91/hour and will be extended to 23 and 24-year-olds for the first time.
You can find the new minimum hourly wages for 2021-22 here.
Auto-enrolment pensions and Salary Exchange are set up and taken care of for you.
Do you need help?
If you are not a Husky client and need help with your workplace pension, do not hesitate to contact us.
If you are a Husky client and have any specific concerns regarding changes to the regulation, let us know at support@huskyfinance.com or by phone on +44 (0) 207 582 7875.