Pay Academy

  • Home
    • Services
    • Clients
    • Team
  • News
  • Contact

Tax & Facts: All you need to know for 2022-2023

14th March 2022

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 GroupFrom April 2021From 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 type2021/22 Earnings trigger per year2022/23 Earnings trigger per yearCollection rate (unchanged)
Loan plan 1£19,895£20,1959%
Loan plan 2£27,295£27,2959%
Loan plan 4£25,000£25,3759%
Postgraduate (unchanged)£21,000£21,0006%

England, Wales and Northern Ireland

PAYE tax rates and thresholdsFrom April 2022
Personal Allowance (PA)£12,570 per year
Basic tax rate20% on annual earnings above the PA up to £37,700
Higher tax rate40% on annual earnings from £37,700 to £150,000
Additional tax rate45% on annual earnings above £150,000

Scotland

PAYE tax rates and thresholdsFrom April 2022
Personal Allowance (PA)£12,570 per year
Starter tax rate19% on annual earnings above the PA up to £14,732
Basic tax rate20% on annual earnings from £14,732 to £25,688
Intermediate tax rate21% on annual earnings from £25,688 to £43,662
Higher tax rate41% on annual earnings from £43,662 to £150,000
Top tax rate46% on annual earnings above £150,000

NIC thresholds and rates (Table A)

ThresholdsPer week 2021/22Per month 2021/22Per week 2022/23Per month 2022/23Rates 2022/23
Lower earnings limit£120£520£123£5330%
Primary threshold (Ees)£184£797£190£82313.25%*
Secondary threshold (Ers)£170£737£175£75815.05%*
Upper earnings limit Primary (Ees)£967£4,189£967£4,1893.25%*
Upper earnings limit Secondary (Ers)£967£4,189£967£4,18915.05%*
*includes Health and Social Care Levy (see below)

Statutory payments

Description2021/222022/23
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.

Filed Under: News

◄ It never rains but it reigns

Contact

Prosperity House
121 Green Lane
Derby DE1 1RZ

Tel: 01332 747017
Email:

Pay Academy – Outsourced Payroll Solutions since 2005

Tweets

Tweets by Pay Academy

Copyright © 2022 · website by Graphic Violence