Covid-19 Coronavirus

Budget 2021

In his Budget speech of 16 February 2021, the Minister for the Treasury, the Hon. A L Cannan, MHK, announced an amendment to the National Insurance Holiday Scheme to take account of the COVID 19 pandemic.

Following the Budget, the Income Tax Division of Treasury published the following Practice Notes:

PN 215/21 - National Insurance Contributions 2021/2022

PN 214/21 – Budget 2021 – Income Tax and National Insurance Proposals

PN 207/19 REVISED – National Insurance Holiday Scheme

Budget 2021 – Tax and National Insurance Headlines

  • The income tax personal allowance has remained at £14,250 for a resident individual and £28,500 for a jointly assessed couple
  • The income tax lower rate for individuals remains at 10% and the higher rate at 20%
  • The threshold at which the higher rate becomes payable remains at £6,500 for an individual and £13,000 for a jointly assessed couple
  • The Upper Earnings Limit for Primary Class 1 National Insurance contributions is remaining at £823 per week
  • The thresholds at which both employees and employers start to pay Class 1 NIC are remaining at £138 per week
  • The Class 2 Small Earnings Exception Limit and Class 4 Lower Profits Limit are remaining at £7,176 annually. The Class 4 Upper Profits Limit is remaining at £823 per week
  • Any changes to the Class 1 Lower Earnings Limit, Class 2 contribution payable by a volunteer development worker and/or Class 3 voluntary contributions will not be announced until after the UK Budget and will be subject to approval by Tynwald in March. Details of National Insurance tables and software guide will be available at that point
  • Following the UK Budget on 3 March 2021 the Class 3 voluntary contribution rate has been increased to £15.40 per week
  • The National Insurance Holiday Scheme is continuing with amendment to take account of persons who were awarded Manx Earnings Replacement Allowance or a received a reduced salary as a result of their employer claiming Salary Support Scheme due to the COVID 19 pandemic

Treasury Pink Book 2021/22

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