Changes to CIS Suffered 2022-23

To claim CIS suffered the business must be a limited company operating within the construction industry. If the company isn’t a limited company deductions can’t be made via filing an EPS, but rather reported on a Self Assessment Tax Return.

From 1st April 2022 HMRC now require the Corporation Tax Unique Taxpayer Reference (CT UTR) or COTAX to be included in the EPS. If neither of these references are provided the EPS submission will fail, and the client will not be able to claim the CIS suffered.

If the company can’t locate their CT UTR, this can request this via HMRC online, following this link.

Tax Year 2022/23 – PAYE

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:

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 over21-2218-20Under 18Apprentice
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!

National Insurance Threshold 2022/23

Now we are in a new tax year, the NI thresholds have increased. Along with the usual NI thresholds, there is now a Freeport upper secondary threshold.

One of the significant changes for the 2022/23 tax year is the rise in primary threshold from £823/mth to £1,048/mth. The change doesn’t come in until the 6th July 2022.

Below is a table showing the monthly 2022/23 Class 1 NI threshold.

Class 1 National Insurance – 2022/23Monthly thresholds
Lower earnings limit£533/mth
Primary threshold£823/mth 6th April 22 to 5th July 22
£1,048/mth 6th July 22 – 5th April 23
Secondary threshold£758/mth
Freeport upper secondary threshold£2,083/mth
Upper secondary threshold (under 21)£4,189/mth
Apprentice upper secondary threshold (apprentice under 25)£4,189/mth
Veterans upper secondary threshold£4,189/mth
Upper earnings limit£4,189/mth

Keep an eye out for further blog posts updating you with the changes that have come in for the 2022/23 tax year.

For any payroll questions please get in touch!

Increase in NI Employment Allowance

The government has announced an increase in the NI Employment Allowanced from £4,000 to £5,000 from April 2022. The allowance enables entitled employers to reduce their NI liability and was first introduced in April 2014.

NI is also set to increase by 1.25 percentage points from April 2022. The increase in NI is to help fund NHS, health and social care.

Rise in National Insurance Threshold

In today’s Spring Statement Rishi Sunak has announced a rise in the Primary Threshold (the point at which employees pay NI) by £3,000, to £12,570 from July 2022.

The Health and Social Care Levy has not been reserved however, with the 1.25% increase in National Insurance starting from the 2022/23 tax year.

Sunak also revealed income tax will reduce form 20p in every pound to 19p by the end of the current Parliament.

HMRC Agent Update: issue 94

HMRC have released their latest Agent Update, issue 94. As usual with these releases, it covers a wide range of subjects and is worth a read to keep up to date with the latest changes.

Some of the arears being discussed in issue 94 include:

  • closure of the Statutory Sick Pay Rebate Scheme
  • CIS changes
  • Making Tax Digital
  • outlining the VAT reverse charge

National Minimum Wage & National Living Wage 2022-23

As we are getting closer to the new tax year it is important to be prepared for the changes coming in, which includes increases in NMW & NLW.

The National Living Wage (for employees aged 23 and over) will increase from £8.91/hr to £9.50/hr. The NMW for 21–22-year-olds increases to £9.18/hr, 18-20 year olds to £6.83, under 18s to £4.81 and apprentice hourly rate goes to £4.81.

23 and
over
21-2218-20Under 18Apprentice
April 2022£9.50£9.18£6.83£4.81£4.81

It is worth keeping in mind the increase comes in from the next pay reference period after the increase.

Example

The minimum wage increases on the 1st April.

An employee gets paid on the 10th of each month for work done between the 10th of the previous month to the 9th of the current month. The employee wouldn’t receive the new NMW until they are paid on the 10th May for earnings between 10th April – 9th May.

HMRC Payments – QR Codes

HMRC have released a new feature allowing companies to pay PAYE taxes using a QR code. By logging into your online account through the Government Gateway, on a desktop browser, you will be able to scan the QR code with your mobile and make the payment on your phone.

HMRC do make the point to watch out for scams. HMRC say they will never send a QR code to a customer, so please always be careful!