National Minimum Wage
Changes from April 2023 are as follows: –
Current Year | 23 & over | 21 to 22 | 18 to 20 | Under 18 | Apprentice |
April 2023 | £10.42 | £10.18 | £7.49 | £5.28 | £5.28 |
Previous 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 – £125,140 @ higher rate 40%
Over £125,140 @ additional rate 45%
Student Loan thresholds: Plan Type 1 £1834 per month
Plan Type 2 £2,274 per month
Plan Type 4 £2,305 per month
Postgraduate Loan £1,750 per month
National insurance primary threshold: increase from £823 to £1048 per month or £190 to £242 per week.
National insurance secondary threshold: Is £758 per month or £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 £156.66 to £172.48; the first 6 weeks will remain at 90% of the employee’s average weekly earnings
Statutory paternity pay/shared parental pay: weekly rate increases to £172.48
SSP: weekly rate increases from £99.35 to £109.40
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 £5000 for the year.
Contact Willow Pay for a dedicated payroll service
Company number 03712189, Registered in England and Wales
Unit G Kingsway Business Park
Oldfield Road, Hampton
Middlesex TW12 2HD
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