How much salary should I give myself in the tax year 2020-2021?
In the budget announced in March 2021, the threshold for personal allowance has been increased. There is an increase from £12, 500 to £12, 570 in the tax free personal allowance. The basic tax rate bracket has been increased to £37 700. This means that an individual will not pay any tax on its earning till £12, 570 and they will pay 20% on their income up to £37 700.