Rates and thresholds for employers 2022 to 2023 – GOV.UK

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Except in any other case said, the next figures apply from 6 April 2022 to five April 2023.

PAYE tax and Class 1 Nationwide Insurance coverage contributions

You usually function PAYE as a part of your payroll so HMRC can accumulate Revenue Tax and Nationwide Insurance coverage out of your workers.

See more: Employers ni threshold 2022/23

Your payroll software program will work out how a lot tax and Nationwide Insurance coverage to deduct out of your workers’ pay.

Tax thresholds, charges and codes

The quantity of Revenue Tax you deduct out of your workers is determined by their tax code and the way a lot of their taxable revenue is above their Private Allowance.

England and Northern Eire

PAYE tax charges and thresholds 2022 to 2023 Worker private allowance £242 per week£1,048 per 30 days£12,570 per 12 months English and Northern Irish primary tax fee 20% on annual earnings above the PAYE tax threshold and as much as £37,700 English and Northern Irish increased tax fee 40% on annual earnings from £37,701 to £150,000 English and Northern Irish further tax fee 45% on annual earnings above £150,000

Scotland

PAYE tax charges and thresholds 2022 to 2023 Worker private allowance £242 per week£1,048 per 30 days£12,570 per 12 months Scottish starter tax fee 19% on annual earnings above the PAYE tax threshold and as much as £2,162 Scottish primary tax fee 20% on annual earnings from £2,163 to £13,118 Scottish intermediate tax fee 21% on annual earnings from £13,119 to £31,092 Scottish increased tax fee 41% on annual earnings from £31,093 to £150,000 Scottish prime tax fee 46% on annual earnings above £150,000

Wales

PAYE tax charges and thresholds 2022 to 2023 Worker private allowance £242 per week£1,048 per 30 days£12,570 per 12 months Welsh primary tax fee 20% on annual earnings above the PAYE tax threshold and as much as £37,700 Welsh increased tax fee 40% on annual earnings from £37,701 to £150,000 Welsh further tax fee 45% on annual earnings above £150,000

Emergency tax codes

The emergency tax codes from 6 April 2022 are:

  • 1257L W1
  • 1257L M1
  • 1257L X

Discover out extra about emergency tax codes.

Class 1 Nationwide Insurance coverage thresholds

You possibly can solely make Nationwide Insurance coverage deductions on earnings above the decrease earnings restrict.

Class 1 Nationwide Insurance coverage thresholds 2022 to 2023 Decrease earnings restrict £123 per week£533 per 30 days£6,396 per 12 months Main threshold 6 April 2022 to five July 2022:£190 per week£823 per 30 days£9,880 per year6 July 2022 to five April 2023: £242 per week£1,048 per 30 days£12,570 per 12 months AdministratorsFor the entire tax 12 months: £229 per week£11,908 per 12 months Secondary threshold £175 per week£758 per 30 days£9,100 per 12 months Freeport higher secondary threshold £481 per week£2,083 per 30 days£25,000 per 12 months Higher secondary threshold (below 21) £967 per week£4,189 per 30 days£50,270 per 12 months Apprentice higher secondary threshold (apprentice below 25) £967 per week£4,189 per 30 days£50,270 per 12 months Veterans higher secondary threshold £967 per week£4,189 per 30 days£50,270 per 12 months Higher earnings restrict £967 per week£4,189 per 30 days£50,270 per 12 months

Class 1 Nationwide Insurance coverage charges

Worker (major) contribution charges

Deduct major contributions (worker’s Nationwide Insurance coverage) out of your workers’ pay by way of PAYE.

Nationwide Insurance coverage class letter Earnings at or above decrease earnings restrict as much as and together with major threshold Earnings above the first threshold as much as and together with higher earnings restrict Stability of earnings above higher earnings restrict A 0% 13.25% 3.25% B 0% 7.1% 3.25% C nil nil nil F (Freeport) 0% 13.25% 3.25% H (apprentice below 25) 0% 13.25% 3.25% I (Freeport — married girls and widows decreased fee) 0% 7.1% 3.25% J 0% 3.25% 3.25% L (Freeport — deferment) 0% 3.25% 3.25% M (below 21) 0% 13.25% 3.25% S (Freeport — state pensioner) nil nil nil V (veteran) 0% 13.25% 3.25% Z (below 21 — deferment) 0% 3.25% 3.25%

Employer (secondary) contribution charges

You pay secondary contributions (employer’s Nationwide Insurance coverage) to HMRC as a part of your PAYE invoice.

Pay employers’ PAYE tax and Nationwide Insurance coverage.

Nationwide Insurance coverage class letter Earnings at or above decrease earnings restrict as much as and together with secondary threshold Earnings above secondary threshold as much as and together with Freeport higher secondary threshold Earnings above Freeport higher secondary threshold as much as and together with higher earnings restrict, higher secondary thresholds for below 21s, apprentices and veterans Stability of earnings above higher earnings restrict, higher secondary thresholds for below 21s, apprentices and veterans A 0% 15.05% 15.05% 15.05% B 0% 15.05% 15.05% 15.05% C 0% 15.05% 15.05% 15.05% F (Freeport) 0% 0% 15.05% 15.05% H (apprentice below 25) 0% 0% 0% 15.05% I (Freeport — married girls and widows decreased fee) 0% 0% 15.05% 15.05% J 0% 15.05% 15.05% 15.05% L (Freeport — deferment) 0% 0% 15.05% 15.05% M (below 21) 0% 0% 0% 15.05% S (Freeport — state pensioner) 0% 0% 15.05% 15.05% V (veteran) 0% 0% 0% 15.05% Z (below 21 — deferment) 0% 0% 0% 15.05%

Class 1A Nationwide Insurance coverage: bills and advantages

You could pay Class 1A Nationwide Insurance coverage on work advantages you give to your workers, for instance an organization cell phone. You report and pay Class 1A on bills and advantages on the finish of every tax 12 months.

Class 1A Nationwide Insurance coverage: termination awards and sporting testimonial funds

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Class 1A Nationwide Insurance coverage contributions are due on the quantity of termination awards paid to workers that are over £30,000 and on the quantity of sporting testimonial funds paid by impartial committees that are over £100,000. You report and pay Class 1A on a lot of these funds through the tax 12 months as a part of your payroll.

Pay employers’ Class 1A Nationwide Insurance coverage.

Class 1B Nationwide Insurance coverage: PAYE Settlement Agreements (PSAs)

You pay Class 1B Nationwide Insurance coverage if in case you have a PAYE Settlement Settlement. This lets you make one annual fee to cowl all of the tax and Nationwide Insurance coverage due on small or irregular taxable bills or advantages on your workers.

Pay Class 1B Nationwide Insurance coverage.

Nationwide Minimal Wage

The Nationwide Minimal Wage is the minimal pay per hour virtually all staff are entitled to by regulation. Use the Nationwide Minimal Wage calculator to examine in the event you’re paying a employee the Nationwide Minimal Wage or in the event you owe them funds from previous years.

These charges apply from 1 April 2022.

Class of employee Hourly fee Aged 23 and above (nationwide residing wage fee) £9.50 Aged 21 to 22 inclusive £9.18 Aged 18 to twenty inclusive £6.83 Aged below 18 (however above obligatory college leaving age) £4.81 Apprentices aged below 19 £4.81 Apprentices aged 19 and over, however within the first 12 months of their apprenticeship £4.81

Verify Nationwide Minimal Wage charges for earlier years.

Statutory Maternity, Paternity, Adoption, Shared Parental and Parental Bereavement Pay

Use the maternity, adoption and paternity calculator for employers to work out your worker’s:

  • Statutory Maternity Pay (SMP)
  • paternity or adoption pay
  • qualifying week
  • common weekly earnings
  • go away interval

These charges apply from 3 April 2022.

Kind of fee or restoration 2022 to 2023 fee Statutory Maternity Pay — weekly fee for first 6 weeks 90% of the worker’s common weekly earnings Statutory Maternity Pay — weekly fee for remaining weeks £156.66 or 90% of the worker’s common weekly earnings, whichever is decrease Statutory Paternity Pay (SPP) — weekly fee £156.66 or 90% of the worker’s common weekly earnings, whichever is decrease Statutory Adoption Pay (SAP) — weekly fee for first 6 weeks 90% of the worker’s common weekly earnings Statutory Adoption Pay — weekly fee for remaining weeks £156.66 or 90% of the worker’s common weekly earnings, whichever is decrease Statutory Shared Parental Pay (ShPP) —weekly fee £156.66 or 90% of the worker’s common weekly earnings, whichever is decrease Statutory Parental Bereavement Pay (SPBP) — weekly fee £156.66 or 90% of the worker’s common weekly earnings, whichever is decrease SMP, SPP, ShPP, SAP or SPBP — proportion of your funds you’ll be able to get well from HMRC 92% in case your complete Class 1 Nationwide Insurance coverage (each worker and employer contributions) is above £45,000 for the earlier tax year103% in case your complete Class 1 Nationwide Insurance coverage for the earlier tax 12 months is £45,000 or decrease

Statutory Sick Pay (SSP)

The identical weekly Statutory Sick Pay fee applies to all workers. Nonetheless, the quantity you will need to really pay an worker for every day they’re off work as a result of sickness (the every day fee) is determined by the variety of ‘qualifying days’ they work every week.

Use the Statutory Sick Pay calculator to work out your worker’s sick pay, or use these charges.

Unrounded every day charges Variety of qualifying days in week 1 day to pay 2 days to pay 3 days to pay 4 days to pay 5 days to pay 6 days to pay 7 days to pay £14.1929 7 £14.20 £28.39 £42.58 £56.78 £70.97 £85.16 £99.35 £16.5583 6 £16.56 £33.12 £49.68 £66.24 £82.80 £99.35 — £19.87 5 £19.87 £39.74 £59.61 £79.48 £99.35 — — £24.8375 4 £24.84 £49.68 £74.52 £99.35 — — — £33.1167 3 £33.12 £66.24 £99.35 — — — — £49.675 2 £49.68 £99.35 — — — — — £99.35 1 £99.35 — — — — — —

Pupil mortgage and postgraduate mortgage restoration

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In case your workers’ earnings are above the earnings threshold, document their scholar mortgage and postgraduate mortgage deductions in your payroll software program. It should robotically calculate and deduct repayments from their pay.

Charge or threshold 2022 to 2023 fee Worker earnings threshold for scholar mortgage plan 1 £20,195 per 12 months£1,682.91 per 30 days£388.36 per week Worker earnings threshold for scholar mortgage plan 2 £27,295 per 12 months£2,274.58 per 30 days£524.90 per week Worker earnings threshold for scholar mortgage plan 4 £25,375 per 12 months£2,114.58 per 30 days£487.98 per week Pupil mortgage deductions 9% Worker earnings threshold for postgraduate mortgage £21,000 per 12 months£1,750.00 per 30 days£403.84 per week Postgraduate mortgage deductions 6%

Firm vehicles: advisory gasoline charges

Use advisory gasoline charges to work out mileage prices in the event you present firm vehicles to your workers.

These charges apply from 1 March 2022.

Engine measurement Petrol — quantity per mile LPG — quantity per mile 1400cc or much less 13 pence 8 pence 1401cc to 2000cc 15 pence 10 pence Over 2000cc 22 pence 15 pence Engine measurement Diesel — quantity per mile 1600cc or much less 11 pence 1601cc to 2000cc 13 pence Over 2000cc 16 pence

Hybrid vehicles are handled as both petrol or diesel vehicles for this objective.

Verify advisory gasoline charges for earlier intervals.

Advisory electrical energy fee for totally electrical vehicles

Quantity per mile: 5 pence.

Electrical energy just isn’t a gasoline for automobile gasoline profit functions.

Worker automobiles: mileage allowance funds

Mileage allowance funds are what you pay your workers for utilizing their very own automobile for enterprise journeys.

You possibly can pay your workers an permitted quantity of mileage allowance funds every year with out having to report them to HMRC. To work out the permitted quantity, multiply your worker’s enterprise journey miles for the 12 months by the speed per mile for his or her automobile.

Discover out extra about reporting and paying mileage allowance funds.

Kind of auto Charge per enterprise mile 2022 to 2023 Automotive For tax functions: 45 pence for the primary 10,000 enterprise miles in a tax 12 months, then 25 pence for every subsequent mileFor Nationwide Insurance coverage functions: 45 pence for all enterprise miles Bike 24 pence for each tax and Nationwide Insurance coverage functions and for all enterprise miles Cycle 20 pence for each tax and Nationwide Insurance coverage functions and for all enterprise miles

Employment Allowance

Employment Allowance permits eligible employers to cut back their annual Nationwide Insurance coverage legal responsibility by as much as the annual allowance quantity.

Allowance 2022 to 2023 fee Employment Allowance £5,000

Apprenticeship Levy

Employers and linked firms with a complete annual pay invoice of greater than £3 million, are liable to the Apprenticeship Levy, which is payable month-to-month. Employers who are usually not linked to a different firm or charity could have an annual allowance that reduces the quantity of Apprenticeship Levy you must pay. Apprenticeship Levy is charged at a share of your annual pay invoice.

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Allowance or cost 2022 to 2023 fee Apprenticeship Levy allowance £15,000 Apprenticeship Levy cost 0.5%

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