Tax year 2022/2023 resources

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

Guernsey (1st January 2022)

The changes from 1st January 2022 to earnings levels:

The contribution percentages are increasing annually:

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

Jersey (1st January 2022 / 1st October 2022)

The following apply from 1st January 2022 and a cost of living reduction applies from 1st October 2022.

Jersey – Minimum Wage (1st November 2022)

A proposed emergency uplift from 1st October 2022 and the annual uplift The annual uplift of the Jersey Minimum Wage for 1st January 2022 has been replaced by an earlier uplift applicable from 1st November 2022

United Kingdom (6th April 2022)

The changes for April 2022 have now been confirmed although much of the detail was announced in the March 2021 Westminster Budget. The Autumn budget was held on Wednesday 27th October 2021.

On Thursday 22nd and 23rd September 2022 as part of the Growth Plan 2022 further changes to National Insurance were announced.

HMRC guidance to operate from 6th April 2022

The tax year 2022/2023 guides can be found at:

Personal Allowance

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

As 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 indicates that the tax rates and bands would remain unchanged until April 2026, and the following are confirmed for 6th April 2022.

Scotland and Income Tax

The Scottish Assembly announced, on 9th December 2021, the proposal for the following changes to the operation of Scottish tax for April 2022

Wales and Income Tax

The Welsh Assembly announced on 20th December 2021, the proposals for continuing to match the Income Tax Rates for the rest of the United Kingdom (England and Northern Ireland).

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

Expenses and Benefits

Employer provided Childcare Vouchers – Basic Earnings Assessment

National Insurance

The weekly bands and rates for April 2022 have been confirmed alongside the Autumn budget 2021. All the periodic values have also been confirmed on 3rd November 2021.

Veterans NI introduces a new Veterans Upper Secondary Threshold (VUST) and Freeports NI bring in a new Freeport Upper Secondary Threshold (FUST).

Further adjustment were announced at the Spring Statement with an increase to the Primary Threshold applicable from 6th July 2022.

NI contributions 6th April 2022 – 5th November 2022

And the NI contributions reflecting the new Health and Social Care Levy rates from 6th April 2022 through 5th November 2022 have been confirmed:

And the mariner NIC rates:

NI contributions 6th November 2022 – 5th April 2022

Further changes have been announced as part of Growth Plan 2022 with the removal of the H&SCL increase from 6th November 2022 for non-directors.

Directors NI contributions 2022-2023 (blended)

The Growth Plan 2022 removal of the H&SCL increase from 6th November 2022 has resulted in a new blended contribution rate for directors.

The blended mariner NIC rate been confirmed as being the general blended rate minus 0.5%.

Class 1A and Class 1B

The Growth Plan 2022 removal of the H&SCL increase from 6th November 2022 has resulted in a new blended contribution rate for benefit related Class 1A and 1B. Real time Class 1A on termination and sporting testimonials is determined by the point of payment.

Software Developers NI Guidance

For use from 6th April 2022 through to 5th July 2022 with original 2022/2023 primary threshold.

For use from 6th July 2022 through to 5th November 2022 reflecting the Spring Statement announced primary threshold.

For use from 6th November 2022 reflecting the repeal of the Health & Social Care Levy announced as part of the Growth Plan 2022

Class 1 NI rates and earnings limits 2022-23 V3

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 (VUST).

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 (FUST).

Health and Social Care Levy

The government introduced 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.

Employers were requested to add a payslip message for the 2022/2023 tax year:

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

On 23rd September 2023, as part time of the Growth Plan 2022 the government repealed the rise to National Insurance from 6th November 2022 and cancelled the separate levy proposal for 6th April 2023. They also instructed employers to stop adding the associated payslip message.

Employment Allowance

As part of the Spring Statement on 23rd March 2022, the Chancellor, Rishi Sunak, announced an increase of the employment allowance for qualifying employers from 6th April 2022.

Student Loan deductions

The student plan 1 and plan 4 loan deduction thresholds applicable from 6th April 2022 have been confirmed. The plan 2 and postgraduate (the Augur review) thresholds applicable were confirmed on Friday 28th January 2022.

Statutory Payments

The statutory payments for April 2022 were subject to a CPI increase of 3.1%. The following values have been confirmed on Monday 29th November 2021

Statutory Parental Payments:

  • Statutory Maternity Pay (SMP)
  • Statutory Adoption Pay (SAP)
  • Shared Parental Pay (ShPP)
  • Statutory Paternity Pay (SPP)
  • Statutory Parental Bereavement Pay (SPBP)

The Statutory Payment threshold and rates change for weeks of statutory payment due on or after Sunday 3rd April 2021.

Rates2021/2022 (for whole weeks commencing from 4th April 2021)2022/2023 (for whole weeks commencing from 3rd April 2022)
Earnings threshold£ 120.00 per week£ 123.00 per week
Standard rate for SMP, ShPP, SPP, SAP, SPBP£ 151.97 per week or 90% of average weekly earnings (whichever is the lower)£ 156.66 per week or 90% of average weekly earnings (whichever is the lower)
Higher rate for SMP/SAP90% of average weekly earnings90% of average weekly earnings

The Small Employers Compensation Rate remains at 3% (on payments made on or after 6th April 2011). The Small Employers Relief (SER) Threshold is £45,000.

Sickness

Statutory Sick Pay (changes on 6th April 2022)

Rates2021/20222022/2023
Earnings threshold£ 120.00 per week£ 123.00 per week
Standard rate£ 96.35 per week£ 99.35 per week

The same weekly SSP rate applies to all employees. However, the amount you must actually pay an employee for each day they’re off work due to illness (the daily rate) depends on the number of ‘qualifying days’ they work each week. The rates operation from 6th April 2022 have been confirmed as follows:

Unrounded daily ratesNumber of qualifying days in week1 day to pay2 days to pay3 days to pay4 days to pay5 days to pay6 days to pay7 days to pay
£ 14.19297£ 14.20£ 28.39£ 42.58£ 56.78£ 70.97£ 85.16£ 99.35
£ 16.55836£ 16.56£ 33.12£ 49.68£ 66.24£ 82.80£ 99.35 
£ 19.87005£ 19.87£ 39.74£ 59.61£ 79.48£ 99.35  
£ 24.83754£ 24.84£ 49.68£ 74.52£ 99.35   
£ 33.11673£ 33.12£ 66.24£ 99.35    
£ 49.67502£ 49.68£ 99.35     
£ 99.35001£ 99.35      

National Minimum Wage / National Living Wage

Budget 2021 delivered on 27th October 2021 confirmed the Low Pay commission recommendation for National Minimum and Living Wage Rates which will apply to pay reference periods starting on or after 1st April 2022:

The background to the changes relates to the following:

Pension AE thresholds

The revised earnings thresholds operational from April 2022 were confirmed on 8th February 2022. initially indicated as being announced before Christmas 2021, the thresholds remain unchanged, frozen at the April 2021 levels. For the first time the Lower Earnings Threshold (LET separates from the National Insurance Lower Earnings Limit (LEL).

Scottish Earnings Arrestment (EA)

The Scottish Parliament approved the following changes on 12th November 2021.

Welsh Attachment of Earnings Orders (AEO)

The Welsh government are undertaking a consultation to revise the AEO in relation to Welsh Local authors AEOs from 6th April 2022.

Isle of Man (6th April 2022)

The Isle Man Budget 2022 has confirmed the following:

PAYadvice.UK Legislation Update 2022

The latest live version following budget and associated announcements of the PAYadvice.UK Legislation Update 2022 can be downloaded (further update versions will be applied as further announcements are made):

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PAYadvice.UK 2/4/2021 updated 30/9/2022