Are You Ready For The New Tax Year 2022-2023?
From 1 April 2022 there will be new rates for National Insurance, National Living Wage/National Minimum Wage and statutory payments, changes to expenses and benefits, and Student Loan deductions.
Ensure you are ready to make the necessary changes to your payroll records, send your final Full Payment Submission (FPS) and issue P60s to employees.
If MATCH handles your payroll, this is all taken care of.
National Minimum Wage
The National Minimum Wage rates increase as follows:
|CURRENT||23 and over||21 to 22||18 to 20||Under 18||Apprentice|
|NEW||23 and over
(National Living Wage)
|21 to 22||18 to 20||Under 18||Apprentice
(under 19 or in 1st year)
Employee Tax Codes
For each employee who will be working for you on 6 April you’ll need to:
- Identify the correct tax code (including the correct prefix i.e. ‘S’ or ‘C’).
- Update their tax code on the payroll record.
For employees with a specified new tax code:
- HMRC will send a P9X letter and a message to your online PAYE Government Gateway account with the new tax code to use.
For employees without notification of a new tax code:
- Use their existing tax code.
- If your employee’s tax code ends with ‘M1’ or ‘W1’ (‘month 1’ or ‘week 1’), don’t carry this part of the code into the new tax year.
For more information, click here for the 2022 P9X form.
PAYE Tax Rates & Thresholds
The amount of Income Tax you deduct from your employees depends on their tax code and how much of their taxable income is above their Personal Allowance. The rates remain the same as 2021-2022.
PAYE Tax Rates & Thresholds
2022 – 2023
|Employee personal allowance
|£12,570 per year|
|Basic tax rate
|20% on annual earnings from £12,571 to £37,700|
|Higher tax rate
|40% on annual earnings from £37,701 to £150,000|
|Additional tax rate
|45% on annual earnings above £150,000|
Running Payroll & Reports
What You Need To Do
|Send your final payroll report of the year
|On or before your employees’ last payday of the tax year (5 April).|
|Update your payroll records with new employee tax codes.
|From 6 April.|
|Update your payroll software so it uses the latest rates and thresholds for Income Tax, National Insurance and student loan repayments.
|From 6 April, or earlier if the software provider asks you to.|
|Give a P60 to all employees who are working for you on the last day of the tax year (5 April).
|By 31 May.|
|Report employee expenses and benefits to HMRC via your payroll software or by filing P11d forms.
|By 6 July.|
|Pay HMRC any Class 1A National Insurance due on the taxable expenses and benefits you’ve provided.
|By 22 July, or 19 July if paying by post.|
For full details of all Rates & Thresholds for Employers in the 2022-23 tax year head to GOV.UK
And if you really fancy a read, head to the GOV.UK Employer Bulletin from Feb 2022 for updates on all main topics.
MATCH is working hard to keep on top of all the latest news and government support so, as always, feel free to get in touch if you have any queries and we’ll be happy to help.
MATCH Accounting Limited