Going into a new tax year is always the busiest time in payroll, and 2022/23 is no different! There have been plenty of changes and updates to rates and thresholds, new schemes, old schemes updated and even some thresholds not changing! At Alderley Payroll Services we pride ourselves with being on top of all PAYE changes and helping guide our clients into the new tax year.
One of the bigger updates for the 2022/23 tax year, which was announced by Rishi Sunak late on, was the increase in the Primary Threshold from 6th July 2022. To re-cap, the Primary Threshold is the point at which employees start to pay employees NI on their earnings. From July the threshold is increasing to £12,570 for the tax year, thus bringing it inline with the personal allowance for 2022/23.
Various schemes for employers NI relief have been updated and a new scheme launched:
- NI Employment Allowance has increased to £5,000
- The veterans’ employers NI relief can now be back dated for 2021/22 and claimed for 2022/23 onwards
- The Freeport employers NI scheme is now up and running
A notable continuation from 2021/22 is the freeze in personal allowance, sticking at £12,570/pa. There is also no change in the workplace pension earnings threshold.
Looking at some usual year on year changes, there is the increased NI thresholds and increases in the National Minimum Wage & National Living Wage. The table below outlines the new minimum wages.
| 23 and over | 21-22 | 18-20 | Under 18 | Apprentice | |
| 2022/23 | £9.50 | £9.18 | £6.83 | £4.81 | £4.81 |
There are of course other changes which we haven’t mentioned, but with it being the busiest time of year in payroll we need to cut our blog post a little short so we can get back to doing what we do best…processing payrolls!
If you have any questions relating to the changes within PAYE for the 2022/23 tax year, or anything else relating to payroll and workplace pensions please feel free to get in touch!