Preparing for tax year 2022/2023

The following are links to blogs and information on payroll changes for 2022:

Guernsey (1st January 2022)

The changes for 1st January 2022 have not yet been announced.

The introduction of the Guernsey Secondary Pension has been delayed until January 2023.

Jersey (1st January 2022)

The changes for 1st January 2022 have not yet been announced.

United Kingdom (6th April 2022)

The changes for April 2022 have not been confirmed although some detail was announced in the March 2021 Westminster Budget.

The Autumn budget has been set for Wednesday 27th October 2021.

Personal Allowance

The personal allowance has been indicated as frozen until April 2026.

If the personal allowance remains frozen, there will be no uplift of tax codes for April 2022

Rest of the UK Income Tax (England and Northern Ireland)

The Westminster 2021 budget indicated that the tax rates and bands would remain unchanged until April 2026.

Scotland and Income Tax

The Scottish Assembly is yet to announce its changes for April 2022

Wales and Income Tax

The Welsh Assembley are yet to announce if they will diverge from the rest of the UK

The Westminster 2021 budget indicated that the tax rates and bands would remain unchanged until April 2026.

Expenses and Benefits

National Insurance

The bands and rates for April 2022 have not yet been confirmed. Veterans NI introduces a new Veterans Upper Accrual Point (VUAP) and Freeports NI bring in a new Freeport Upper Accrual Point (FUAP). Based on the 2021/2022 values and initial testing thresholds then the following are the potential unconfirmed values.

And the contributions reflecting the new Health and Social Care Levy

Veterans National Insurance

HMRC have issued initial information on the operation of Veterans National Insurance Contributions Holiday for employers with the introduction of the new NIC category V and an associated Veterans Upper Secondary Threshold.

Freeport’s National Insurance

HMRC have issued initial information on the operation of Freeports National Insurance Contributions Holiday for employers with the introduction of the new NIC categories F, I, S and L and an associated Freeports Upper Secondary Threshold.

Health and Social Care Levy

The government propose to introduce a new Health and Social Care Levy from 6th April 2022, initially included within the operation of National Insurance, and then from 6th April 2023 as a separate levy.

And a similar levy rise is to apply to the payments of dividends

Student Loan deductions

The student and postgraduate loan deduction thresholds applicable from 6th April 2022 have been confirmed

Statutory Payments

The statutory payments operational from April 2022 are yet to be announced.

National Minimum Wage / National Living Wage

PAYadvice.UK Legislation Update 2022

The latest draft version of the Legislation Update 2022 can be downloaded from:

PAYadvice.UK 2/4/2021 updated 23/10/2021