Legislation update 2022 for payroll

Following the successful Legislation update 2021 for payroll by PAYadvice.UK with 19,500 hits and downloads since its launch at the beginning of 2021, following the UK budget on 27th October trigger and confirming a number of payroll changes for April 2022, along with announcement by States of Guernsey and States of Jersey – PAYadvice.UK have issued its PAYadvice Series Legislation Update 2022 for payroll.

The first Legislation Update 2021 for payroll was made available on 7th January 2021 and we believe that PAYadvice was the first organisation in the UK to bring together the various resources needed by payroll professional and payroll software developers in preparation for the April 2021 changes, even to the extent of other organisation also reproducing information within their own publications. We were bold enough to take the resources that were publicly released and make predictions of values yet to be confirmed. Almost all predictions came to fruition with a few exceptions and adjustments.

This is a compilation of the confirmed changes due for 2022 for the UK, Channel Islands and the Isle of Man, along with proposals and some predictions. As more detail is announced and confirmed, updated versions will be issued.

As announcement are made, the guide will be updated and adjusted.

The following table indicates the current status of whether something is confirmed, waiting or predicted:

Legislation update item	Status
UK Income Tax Allowance	Confirmed
Rest of the UK Income Tax (England and Northern Ireland)	Confirmed
Scottish Income Tax	Confirmed
Welsh Income Tax	Confirmed
National Insurance including 6th July 2022 primary threshold changes	Confirmed
National Insurance repeal of H&SCL 6th November 2022 contribution changes	Confirmed
Employment Allowance	Confirmed
Statutory Payments (SSP, SMP, SAP, SPP, ShPP, SPBP)	Confirmed
Pension and Auto-Enrolment	Confirmed
Student Loans and Postgraduate Loans	Confirmed
National Minimum Wage and National Living Wage	Confirmed
Living Wage and London Living Wage	Confirmed
States of Guernsey Class 1 (1st Jan 2022)	Confirmed
States of Jersey Social Security (1st Jan 2022)	Confirmed
States of Jersey Social Security (1st Oct 2022)	Confirmed
Isle of Man Income Tax	Confirmed
Isle of Man National Insurance	Confirmed

For the latest edition:

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Update history

6/11/2021 version 22.1 edition brings together a variety of announced values and some bold prediction on the potential payroll changes considered needed for 2022.

11/11/2021 version 22.2 edition adds predictions for the UK Statutory Payments based on a 3.1% CPI uplift. The actual values are anticipated as being confirmed towards the end of November 2021

15/11/2021 version 22.3 edition adds the announced Living and London Living Wage rates

29/11/2021 version 22.4 edition adds the confirmed statutory payment values for: SSP, SMP, SAP, SPP, ShPP, SPBP.

10/12/2021 version 22.5 edition adds the proposed Scottish Income Tax rates and bands.

30/1/2022 version 22.6 edition confirms the frozen Welsh Income Tax rates, the Student Loan Thresholds for Plan 2 and Postgraduate Loans.

9/2/2022 version 22.7 edition confirms the freeze to the Pension AE thresholds.

18/2/2022 version 22.8 edition includes the changes announced at the Isle of Man Budget 2022.

23/3/2022 version 22.9 edition including the changes announced in the Spring statement 2022.

10/9/2022 version 22.10 edition including cost of living reduction of Jersey Class 1 contributions from 1st October 2022.

25/9/2022 version 22.11 edition including updates from the U.K. Growth Plan 2022 with the new changes to National Insurance from 6th November 2022.

9/10/2022 version 22.12 edition containing finalised information.

PAYadvice.UK 6/11/2021 last updated 24/11/2022