Payroll Changes from April 2022

April 1, 2022

National Minimum Wage

Changes from April 2022 will be as follows: –

Year

23 & over

21 to 22

18 to 20

Under 18

Apprentice

April 2021 (current)

£8.91

£8.36

£6.56

£4.62

£4.30

Year

23 & Over

21 to 22

18 to 20

Under 18

Apprentice

April 2022

£9.50

£9.18

£6.83

£4.81

£4.81

Income Tax and National Insurance

Income Tax thresholds as indicated below:

Personal allowance: £12,570

Standard Tax code: 1257L

Income tax:

£12,571 – £50,270 @ basic rate 20%

£50,271 – 150,000 @ higher rate 40%

£150,001 and above @ additional rate 45%

Student Loan thresholds:

Plan Type 1 £1,682.91 per month

Plan Type 2 £2,274.58 per month

Plan Type 4 £2,114.58 per month

Postgraduate Loan £1,750.00 per month       

National insurance primary threshold: increase from £797 to £823 per month or £184 to £190 per week.

National insurance secondary threshold: increase from £737 to £758 per month or £170 to £175 per week

Statutory Payments

The earnings threshold for statutory payments increases from £120 per week to £123 per week

Statutory maternity pay/statutory adoption pay: weekly rate increase from £151.97 to £156.66; the first 6 weeks will remain at 90% of the employee’s average weekly earnings

Statutory paternity pay/shared parental pay: weekly rate increase to £156.66

SSP: weekly rate increase from £96.35 to £99.35

Auto Enrolment

The Automatic Enrolment earnings threshold will remain at £10,000. The lower earnings limit of the qualifying earnings band will remain at £6,240 and the upper earnings limit of the qualifying earnings band will remain at £50,270.

Minimum pension contributions remain at 3% employer and 5% employee

Employment Allowance

Only businesses with an employer national insurance bill of £100,000 or less in the previous tax year will be eligible to claim Employment Allowance.

For businesses who are eligible to claim it, the Employment Allowance is £4000 for the year.