2020-21 increases tax pensions student loans hourly wage minimum wage

2020/21 Tax year updates

NIC Threshold Rise

With the 2020/21 tax year starting on 6th April 2020 we see the NIC threshold rise to £9,500. The personal allowance is set to stay at £12,500. This will result in a cut of £104 for the average full time worker and a cut of £78 for the average self-employed worker.

Hourly wage amounts

We also see an increase to the National living wage. Workers 25 and over will see their hourly rate increase to £8.72. Workers aged 21-14 will now receive an hourly rate of £8.20. Whilst those aged 18-20 will now receive an hourly rate of £6.45. The hourly rate for workers 18 and under has increased to £4.55 with apprentices now entitled to an hourly rate of £4.15.

Pensions

As of April 6th the pension lifetime allowance rose to £1,073.000. This is the overall limit of tax privileged pension funds that can be accrued during a lifetime before the lifetime allowance tax charge applies.

The state pension has gone up by 3.9%. This means that those receiving the new state pension will see an increase of £6.60 per week. Those who receive the old state pension will see an increase of £5.05 per week.

Student Loans

Graduates can now earn £26,575 before starting to repay their student loan.

Junior Isa’s

Parents can save a maximum of £9,000 a year for their child in a junior Isa, that’s gone up from £4,368 from 6th April 2020.

Capital Gains Tax

From 6 April 2020, if a UK resident sells a residential property in this country, they’ll now have 30 days to tell HMRC and pay any money owed.

There are also changes for non-UK residents selling both residential and non-residential property in this country. Non-UK residents will still be required to tell HMRC within 30 days whether there is tax to pay or not and will no longer to be able to defer payment via their Self Assessment return. HMRC will launch a new online service to make it easier to report and pay any CGT.

Contact AJR & Co Ltd for further advice

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