2020/21 Tax Rates and Allowances
This page contains all of the personal income tax changes which were published on the gov.uk site on Fri 28 Feb 2020. These rates come into effect at the start of the new tax year, on April 6th 2020.
- Failure to apply the annual minimum wage rate increase as they go up each year on 1 April.
- Missed birthdays as employees turn 18, 21 or 25 years old and move from one NMW rate to another.
- Paying the apprentice rate to somebody who isn’t actually an apprentice. Recognised apprentices must have an apprenticeship contract and undergo an element of structured training.
- Continuing to pay the apprentice rate for too long. The apprentice rate only applies to apprentices who are under the age of 19, or if aged 19 or over within the first year of their apprenticeship.
- Making wage deductions for items or expenses that are connected with the job. This could include, for example, safety clothing, uniforms, tools etc.
- Making wage deductions that are deemed to be for the employer’s “own use or benefit”. For example a Christmas club saving scheme. It doesn’t matter that the worker can choose to buy into the scheme and the employer doesn’t have to make a profit from it.
- Charging a worker more than the stated offset rate for living accommodation, currently £49 a week.
- Not paying for all the time worked such as time spent travelling, training or downtime at the employer’s disposal.
- Not paying for additional time worked such as time spent clearing security checks once a worker’s shift has finished.
- Including elements of pay that don’t count towards minimum wage such as tips and the premium element of pay associated with shift premium.
as given in 2018 by HMRC.
Personal Tax
2019/2020 Tax Rates and Allowances
This page contains all of the personal income tax changes which were announced at the October 29th, 2018 Budget. These rates come into effect at the start of the new tax year, on April 6th 2019.
2018/2019 Tax Rates and Allowances
We have published a quick reference to the significant changes to the tax rates and bands, personal tax allowances and national insurance figures which come into effect from April 6th 2018.