Tax Year 2022-23: New Rates, Allowances and Thresholds

The new tax year 2022-23 New Rates, allowances and thresholds you need for your payrolls from April 2022 are as follows:

All tax thresholds and allowances have been frozen so remain the same as last tax year (except Scotland). Therefore the standard tax code remains 1257L.

National Insurance Thresholds have changed.
The lower earnings threshold increases from £120 to 123 per week; from £520 to £533 per month; from £6240 to £6396 per year.
The employees earnings threshold increases from £184 to £190 per week; from £797 to £823 per month; from £9568 to £9880 per year.
The employers earnings threshold increases from £170 to £175 per week; from £737 to £758 per month; from £8840 to £9100 per year.
The upper earnings limit remain unchanged at £967 per week; £4189 per month and £50270 per year.

However, the big change is the introduction of the new health and social care levy starting April 2022. Where National Insurance is taken, this amount is increased by 1.25 percent for both employees and employers (from 12% to 13.25% for employees and from 13.8 to 15.05% for employers). This addition will be included in the National Insurance calculations for 2022-23 but will be separated out as a deduction in it’s own right from the 2023-24 tax year.

Statutory Payments Increases:
Statutory Sick Pay increased from £96.35 to £99.35 per week
Statutory Maternity/Paternity/Adoption Pay increases from £151.97 to £156.66 per week

Student Loan Thresholds
Plan 1 increases from £19,895 to £20,195 per year
Plan 2 remains £27,295 per year
Plan 4 increases from £25,000 to £25,375 per year

National Minimum Wage Hourly Rates from April 2022:
Apprentice rate from £4.30 to £4.81. This is a 11.9% increase
16-17 year olds from £4.62 to £4.81. This is a 4.1% increase
18-20 year olds from £6.56 to £6.83. This is a 4.1% increase
21-22 year olds from £8.36 to £9.18. This is a 9.8% increase
23 years and above from £8.91 to £9.50. This is a 6.6% increase

Redundancy Pay increases from a maximum of £544 to £571 per week.

Full rates and allowances can be found here