Payroll Update 2022-23
For the 2022-23 tax year personal allowances will remain the same at£12,570.00 per annum
New Minimum Wages Increases
April 2021 April 2022
Apprentice £4.30 £4.81
Under 18 £4.62 £4.81
18-20 £6.56 £6.83
21-22 £8.36 £9.18
23 and over £8.91 £9.50
The Employer Allowance will be restricted to employers with National Insurance Contributions (NIC) liabilities of under £100,000.00 in the previous tax year. The amount that employers can reduce their Ers NI liability increases to £5,000.00
Health and Social Care Levy
From April 2022 the rate of National Insurance contributions will increase from 12% of qualifying earnings to 13.25% of qualifying earnings.
As background to this request, employers will recall that on 7 September 2021 the government announced a new 1.25% Health and Social Care Levy to fund investment in the NHS, health and social care. The Levy is effectively introduced from April 2022 when National Insurance contributions for working age employees, self-employed people and employers will increase by 1.25 percentage points and be added to the existing NHS allocation.
From April 2023 National Insurance will return to its current rate, instead the extra 1.25% will be collected and shown on the payslip as “Health and Social Care Levy”. This Levy – unlike National Insurance will also be paid by state pensioners who are still working.
NIC rates announced last year will continue as planned from 6th April 2022 meaning that the threshold for paying NI will be £9,880.00. In the recent Spring Statement it was announced that from 6th July 2022 this threshold would increase to £12,570.00.
National Insurance holiday for employers of veterans
Guidance is now available for employers wishing to take advantage of the National Insurance holiday for employers of veterans. Introduced on 6 April 2021, employers who hire former members of the UK regular armed forces during the first year of their civilian employment will be eligible for a zero-rate of secondary National Insurance contributions for up to 12 months. Employers will be able to claim this relief through Real Time Information submissions from 6 April 2022 and any earnings of qualifying veterans hired from 6 April 2021 will be eligible for retrospective National Insurance contributions relief.
Student Loan Thresholds
Student loan thresholds are increasing in April 2022 to:-
Plan 1 £20,195.00 (from £19895.00)
Plan 2 £27,295.00 (no change)
Plan 4 (Scotland) £25,375.00 (from £25000.00)
Postgraduate Loan £21,000.00 (no change)
SSP is increasing from £96.35 per month to £99.35 per week
SMP, SAP and SPP is increasing from £151.97 to £156.66 per week.
It is important that HMRC have your employees correct address on its records – this can be checked on the HMRC website by going onto their “Personal Tax Account”. It does not get updated through the payroll software.
Changes to HMRC Employer Helpline processes
It’s important the information HMRC hold is secure to help protect customer data. Following a review of procedures, when customers call the Employer Helpline, they will no longer be able to proceed if you do not have your PAYE or Accounts Office reference. Where customers do not have those references, HMRC can now only give general advice. If the customer requests the references to be sent by post, HMRC will send these to the address held on record.
In addition, HMRC will no longer be able to provide the PAYE or Accounts Office reference over the phone following a request for a PAYE registration. Details of the references will be sent by post within seven days.