Versions Compared

Old Version 8

changes.mady.by.user Miriam Cox

Saved on

compared with

New Version Current

changes.mady.by.user Miriam Cox

Saved on

Key

  • This line was added.
  • This line was removed.
  • Formatting was changed.

...

The changes that have been implemented are summarized below. For further information, click on the expandable sections for the relevant subject matter.

Please ensure that you follow the Tax Year End Procedure before you start processing your final period of the current tax year.

Update

Short Description

Statutory Parameters for 2022/2023 tax year

The statutory parameters for tax year 2022 to 2023.

P60 version for 2021/2022 tax year

P60 layout has not changed from 2020 to 2021 tax year.

NI Category for Veterans

The new features that are available for the new NI category for Veterans.

Advice on claiming for the previous tax year.

NI Categories for Freeports

The new features that are available for the new NI categories for Freeports.

Health and Social Care Levy

An alert notice to payees of the National Insurance contribution increase.

Scottish Earnings Arrestment Parameters

An increase to the Scottish Earnings Arrestment parameters

Expand
titleStatutory Parameters 2022/2023

Statutory Parameters for 2022/2023 Tax Year

The breakdown of all UK statutory parameters for each tax year can be found here.

Tax Bands/Tax Rates

The tax rates for England/Northern Ireland, Wales and Scotland have not changed from the previous tax year.

The tax bands for England/Northern Ireland and Wales have not changed from the previous tax year.

The tax bands for Scotland have changed.

Threshold

2021/2022

2022/2023

Rate %

Starter Rate

1 - 2097

1-2162

19

Basic Rate

2098 - 12726

2163 - 13118

20

Intermediate Rate

12727 - 31092

13119 - 31092

21

Higher Rate

31093 - 150000

31093 - 150000

41

Top Rate

150001 >

150001 >

46

Emergency Tax Code

The Emergency Tax Code of 1257L has not changed.

Tax Code Uplift

There is no tax code uplift for 2022/23 tax year.

National Insurance Thresholds/Rates

The National Insurance Thresholds have changed. Please refer to Statutory Parameters for Each Tax Year page for details. The breakdown of the thresholds has changed due to the introduction of FUST threshold for Freeport National Insurance. In the table below, it shows the parameter values for each threshold and percentage rate used for weekly frequency. The Statutory Parameters for Each Tax Year link shows Monthly and 2 Weekly breakdown.

To fund the NHS and social care across the UK, the National Insurance contributions have been increased by 1.25% for both employee and employer contributions. The table below demonstrates the percentage values that will be charged for the thresholds of pay (using a weekly frequency) for the different National Insurance Categories.

Category

Weekly Earnings £

Percentage

Employee

A,M/H/F/V

Earnings up to 190

Earnings between 190 - 967

Remaining earnings above 967

0

13.25

3.25

B/I

Earnings up to 190

Earnings between 190 - 967

Remaining earnings above 967

0

7.1

3.25

C/S

All earnings

0

J/L/Z

Earnings up to 190

Earnings of 190 and above

0

3.25

Employer

A/B/C/J

Earnings up to 175

Earnings above 175

0

15.05

M/Z/H/V

Earnings up to 967

Earnings above 967

0

15.05

F/I/S/L

Earnings up to 489

Earnings above 489

0

15.05

This table gives an example of what the increase will mean in monetary terms comparing to 2021/2022 tax year.

NI Category

Weekly Earnings £

2021/2022

2022/2023

Employee

Employer

Employee

Employer

A

400

25.92

31.74

27.82

33.86

1000

94.62

114.54

104.02

124.16

M/H

400

25.92

0

27.82

0

1000

94.62

4.55

104.02

4.97

Student Loan/Postgraduate Loan

The percentage deduction rates have not changed. Plan Type 1 and 4 threshold values have changed.

Loan Type

2021/2022

2022/2023

% Rate

Student Loan Plan Type 1

19895

20195

9

Student Loan Plan Type 2

27295

27295

9

Student Loan Plan Type 4

25000

25375

9

Postgraduate Loan

21000

21000

6

Statutory Payments

Statutory Payments have changed.

Statutory Payment

2021/2022

2022/2023

Statutory Maternity Pay (SMP)

151.97

156.66

Statutory Adoption Pay (SAP)

151.97

156.66

Statutory Paternity Pay (SPP)

151.97

156.66

Shared Parental Pay (ShPP)

151.97

156.66

Statutory Parental Bereavement Pay (SPBP)

151.97

156.66

Statutory Sick Pay

96.35

99.35

When you download the new tax year and import the statutory parameters, FastTrack360 will automatically up-rate existing statutory values against payees who have SMP/SAP/SPP/ShPP payments determined for the new tax year.  This is currently not available for Statutory Parental Bereavement Pay as these values are applied directly in the pay batch.

For SSP, during the pay batch process, the FastTrack360 will determine the change in the daily SSP rate when a sick period spans the 2 tax years.

Apprenticeship Levy

Apprenticeship Levy of 0.5% and annual allowance of £15000 has not changed.

Employment Allowance

Employment Allowance of £4000 has not changed.

Pension Thresholds

Pension threshold values are pending confirmation from the Department of Work and Pensionsparameters has not changed from 2021/2022 tax year.

Expand
titleVeteran National Insurance

Veteran National Insurance

Following on from 2021-2022 where employers were given additional relief for recruiting veterans from the armed forces, the HMRC has provided a separate National Insurance category to use so that the relief to employer National Insurance can be given directly in the payroll. If a veteran is employed, there is significant cost saving for the employer for the first year of the veteran’s civilian employment. The table below gives an example of the savings comparing A category to V category:

NI Category

Earnings (Weekly)

Employee Contribution

Employer Contribution

A

800.00

80.82

94.06

V

800.00

80.82

0.00

A

1000.00

104.02

124.16

V

1000.00

104.02

4.97

Please refer to this /wiki/spaces/FV1OH/pages/2604236935 to obtain more information about the qualification for operating veteran National Insurance. The information below describes the changes in FastTrack360 for using the newly provided category.

Product Changes

Payee Screen - HMRC Details

The National Insurance category list will now display the option of ‘V'If you have an existing payee who is a veteran already on the payroll, you would have used an age appropriate NI category in tax year 2021/2022. The HMRC has now supplied the category of ‘V' so that you can claim relief directly in the payroll. In order to operate the category of ‘V’, you will need to add a new validity period in the HMRC Details section of the payee record for the first pay period of the tax year. Then, in the NI Category list, select 'V’.

When selecting the category of 'V', a new field will display labelled First Civilian Employment Date. This field must be entered when selecting this particular category.

If you have a new payee join your organisation who is a Veteran, when you add their payee record, you will need to select the category of 'V' manually and then add their First Civilian Employment Date.

Pay Period Close

The pay period close in the Pay Group maintenance screen has the functionality to update a payee’s NI category based on their age as at the next period’s pay date. This has been enhanced to update the payee’s NI category to an age appropriate category at 1 year anniversary of the payee’s first civilian employment date.

Claiming for 2021/2022 tax year

If you have recruited a veteran in tax year 2021/2022, you can claim this relief directly via the HMRC by writing a letter to include:

  • The reference (heading) ‘Overpaid NI contributions’

  • Their employee’s name, date of birth and National Insurance number

  • An explanation that they are reclaiming Veteran’s relief

  • The period they have overpaid in

  • Confirmation that they are claiming for a qualifying veteran and retain evidence to show this (HMRC may request to see this evidence at a later date)

  • The account number, sort code and account name for the bank account where they want their refund to be paid

Claims for one employee to be sent to:

HM Revenue and Customs

National Insurance Contributions and Employer Office

BX9 1AN

Claims for more than one employee to be sent to:

HM Revenue and Customs

National Insurance Contributions and Employer Office

BX9 1BX

...

Expand
titleHealth and Social Care Levy - Communication with Payees

Health and Social Care Levy - Payslip Message

As highlighted in the Statutory Parameters 2022/23 section, the amount of National Insurance employees and employers make is increasing. This is to help fund the NHS and social care. The HMRC has requested for employers to output a message on payslips for 2022/2023 tax year, where possible, to inform payees of the uplift to contributions. The HMRC has provided a suggested message of:

1.25% uplift in NIC funds NHS, health & social care.

This has automatically been applied to the Pay Company > Payslip Message field in your application similar to the screenshot example below.

It is your decision if you wish to output this message onto your payslips or whether you wish to change it to another message. You are free to remove the message from this section. Please be aware of the following regarding this payslip message:

  • It will only display if you have included payslip messages and Pay Company Payslip row in your document format. See an example below in the document format configuration screen:

  • If you also have payslip messages in your document format for contractor self bill invoices, the message would also be output.

  • If this is the case, and you wanted to output the message to your PAYE employees only, an alternative approach would be:

    • Remove the payslip message from Pay Company > Payslip Details > Payslip Message that has been applied above.

    • Go to your payslip template for your PAYE payees.

    • Click on Payslip Message to highlight the section.

    • In the right hand panel click the plus symbol in Rows/Columns to add another item.

    • Click on the folder to edit the newly created item. This will open up the Field Properties

    • Give it a name e.g. HMRC Message

    • Click on Item.

    • Click on the ellipsis button (3 dots) against the Database Field. This will open another pop up screen.

    • Image RemovedImage Added

    • Enter the required message in the Text Before field.

    • Click Ok which will close the pop up.

    • Click Ok which will close the Field Properties.

    • Click Save to save the changes. You can preview the output to see your message.

Expand
titleScottish Earnings Arrestment Parameters

Scottish Earnings Arrestment Parameters

The Scottish Earnings Arrestment parameters are changing from 6 April 2022. The parameters will be:

Net Earnings £

Deduction

Weekly

Not exceeding 130.73

Nil

Exceeding 130.73 but not exceeding 472.54

£4.00 or 19% of earnings exceeding £130.73, whichever is the greater

Exceeding 472.54 but not exceeding 710.42

£64.94 plus 23% of earnings exceeding £472.54

Exceeding 710.42

£119.66 plus 50% of earnings exceeding £710.42

Monthly

Not exceeding 566.51

Nil

Exceeding 566.51 but not exceeding 2047.65

£15.00 or 19% of earnings exceeding £130.73, whichever is the greater

Exceeding 2047.65 but not exceeding 3078.47

£281.42 plus 23% of earnings exceeding £2047.65

Exceeding 3078.47

£518.51 plus 50% of earnings exceeding £3078.47