HMRC NI Tool

With the introduction of the Health and Social Care Levy and the change to the Primary Threshold (the threshold at which employees NI is due) from July, HMRC has released a new NI tool. The tool provides employees with an estimated difference in NI payable with the NI changes introduced.

The online tool can be found here!

HMRC Bulletin – June 2022

HMRC have released their latest Employer Bulletin. As always, these bulletins are worth a read if you are an employer to help stay up to date with any changes.

The standout update, which has already been widely advertised, is the increase in the National Insurance Primary Threshold. The Primary Threshold is the threshold at which employees NI starts to be deducted. It is worth noting that for directors, who’s NI is calculated on an annual basis, the increase will be pro-rata’d to £11,908 for 2022/23.

To read the bulletin please follow the link!

Fit Notes – New Legislation

Fit notes are what an employee would hand to their employer to become eligible for sick pay. Historically these can only be provided by a doctor though new legislation has now come into force allowing a range of healthcare professionals, other than just doctors, to sign fit notes.

Registered nurses, pharmacists, physio’s and occupational therapists can now issue a fit note.

HMRC Webinars

HMRC offer a wide range of webinars to help support employers. The topics can include everything from expenses and benefits, how to submit P11D forms through to upcoming changes for the new tax year. To sign up and receive notifications for upcoming HMRC webinars you can follow this link!

You can also find a variety of pre-recorded webinars here!

Further HMRC support can be found online or by using the HMRC employer helpline 0300 200 3200 for general queries. If you have an employee related query, the employee will need to ring 0300 200 3300 and as an employer you can’t do this on their behalf.

Payroll Reports

Each time we process a payroll as Alderley Payroll Services, as well as payslips being produced, we also provide a summary report. This report is sent along to a chosen point(s) of contact at the business as well as the company accountant/bookkeeper if requested. These reports provide useful information as to who has been paid, and detail everything from gross pay, net pay, income tax, employers & employees NI, pension deductions and much more.

As with all aspects of the services we offer, we believe in customisation. The reports we produce are customisable and can include a whole host of extra information which is useful both to the business and accountant. We also don’t simply provide data in PDF formats, we are happy to provide them in excel format, or CSV, thus enabling the client to quickly drop the data into their own spreadsheets or accounting software. This is a huge time saver!

At Alderley Payroll Services we don’t believe in hidden costs and use very simple pricing structures, and because of this, there is no added fees for extra payroll reports, or custom reports.

If you have any questions about the payroll service we provide, or any other PAYE related questions please feel free to get in touch!

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.