Here it is – the much-anticipated Tax & Facts: everything you need to know in 2022-23 relating to tax, national insurance student loans, minimum wage and statutory payments. I can feel your enthusiasm… don’t read it all at once!
National Minimum Wage
| Age Group | From April 2021 | From April 2022 |
|---|---|---|
| 23+ | £8.91 | £9.50 |
| 21 to 22 | £8.36 | £9.18 |
| 18-20 | £6.56 | £6.83 |
| 16-17 | £4.62 | £4.81 |
| Apprentices under 19 | £4.30 | £4.81 |
| *Apprentices aged 19 and over in first year of apprenticeship | £4.30 | £4.81 |
Student Loans
| Loan type | 2021/22 Earnings trigger per year | 2022/23 Earnings trigger per year | Collection rate (unchanged) |
|---|---|---|---|
| Loan plan 1 | £19,895 | £20,195 | 9% |
| Loan plan 2 | £27,295 | £27,295 | 9% |
| Loan plan 4 | £25,000 | £25,375 | 9% |
| Postgraduate (unchanged) | £21,000 | £21,000 | 6% |
England, Wales and Northern Ireland
| PAYE tax rates and thresholds | From April 2022 |
|---|---|
| Personal Allowance (PA) | £12,570 per year |
| Basic tax rate | 20% on annual earnings above the PA up to £37,700 |
| Higher tax rate | 40% on annual earnings from £37,700 to £150,000 |
| Additional tax rate | 45% on annual earnings above £150,000 |
Scotland
| PAYE tax rates and thresholds | From April 2022 |
|---|---|
| Personal Allowance (PA) | £12,570 per year |
| Starter tax rate | 19% on annual earnings above the PA up to £14,732 |
| Basic tax rate | 20% on annual earnings from £14,732 to £25,688 |
| Intermediate tax rate | 21% on annual earnings from £25,688 to £43,662 |
| Higher tax rate | 41% on annual earnings from £43,662 to £150,000 |
| Top tax rate | 46% on annual earnings above £150,000 |
NIC thresholds and rates (Table A)
| Thresholds | Per week 2021/22 | Per month 2021/22 | Per week 2022/23 | Per month 2022/23 | Rates 2022/23 |
|---|---|---|---|---|---|
| Lower earnings limit | £120 | £520 | £123 | £533 | 0% |
| Primary threshold (Ees) | £184 | £797 | £190 | £823 | 13.25%* |
| Secondary threshold (Ers) | £170 | £737 | £175 | £758 | 15.05%* |
| Upper earnings limit Primary (Ees) | £967 | £4,189 | £967 | £4,189 | 3.25%* |
| Upper earnings limit Secondary (Ers) | £967 | £4,189 | £967 | £4,189 | 15.05%* |
Statutory payments
| Description | 2021/22 | 2022/23 |
|---|---|---|
| Weekly SMP/SPP/SHPP/SAP (lower rate) | £151.97 | £156.66 |
| Weekly SSP | £96.35 | £99.35 |
Health and Social Care Levy
For 2022-23 only, this levy is incorporated into the Class 1, 1A, 1B and Class 4 NIC rates at 1.25% increase to the main rates for both employees and employers.
Those on national insurance letter C (above state pension age) will not incur the increased NI levy in 2022-23 but will incur it from 6th April 2023 onwards.
HMRC is asking (but nor requiring) a note within the payslip to the effect of; “1.25% uplift in NICs, funds NHS, health & social care” (sic). We confirm that this will be included on our payslips.
