It is that all important time of year for you to get ready for the statutory changes from 6 April 2022.
The changes that have been implemented are summarized below. Click on the links provided to take you to the detailed description of the change.
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. |
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. |
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. Please refer to the Statutory Parameters for Each Tax Year page for details.
National Insurance Thresholds/Rates
The National Insurance Thresholds have changed. Please refer to Statutory Parameters for Each Tax Year page for details.
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 | |
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 page 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.
Payee Screen - HMRC Details
The National Insurance category list will now display the option of ‘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.
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.