Payroll news
ON 17 NOVEMBER 2022, chancellor of the Exchequer, Jeremy Hunt, delivered the autumn statement. At the time of writing, the statement had only just been given. The CIPP’s policy and research team will be keeping an eye out for future updates relating to the announcements and publishing further information as and when it’s available. As a starting point, here are the key announcements for payroll professionals to be aware of:
Tax l from April 2023, the threshold at which people pay the additional rate of income tax (charged at 45%) will be lowered from £150,000 to £125,140 l the government will maintain the current freeze on income tax personal allowance and higher-rate tax thresholds until April 2028 (this was originally due to be in place until April 2026, meaning an extension of two years). National Insurance (NI) l the primary threshold, secondary threshold, upper earnings limit, upper secondary threshold, apprentices upper secondary threshold, veteran upper secondary threshold and freeports upper secondary threshold all frozen until April 2028 l the employment allowance will remain at £5,000. National minimum wage (NMW) / national living wage (NLW) l the government is accepting the recommendations of the Low Pay Commission, in terms of increases to the NMW and NLW. The table below shows the new rates for use from pay reference periods beginning on or after 1 April 2023, along with the associated percentage increases.
Rate from April 2023 Current rate (April 2022 to March 2023) Increase
NLW
£10.42 £10.18
£9.50 £9.18 £6.83 £4.81 £4.81 £8.70
9.7%
21-22 Year Old Rate 18-20 Year Old Rate 16-17 Year Old Rate
10.9%
£7.49 £5.28 £5.28 £9.10
9.7% 9.7% 9.7% 4.6%
Apprentice Rate
Accommodation Offset
Pensions l the triple lock will be honoured in 2023, meaning that the state pension will increase in line with inflation, by 10.1%.
HM Revenue and Customs (HMRC) l a further £79 million will be invested over the course of the next five years to allow HMRC to allocate more staff to tackling cases of serious tax fraud and address tax compliance risks among the wealthy.
The policy team’s full autumn statement document can be found here: http://ow.ly/6eiT50LI2Ln.
Diary dates
Last day for submitting a real time information employer payment summary to apply to tax month 8 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method
19 December
22 December
Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method
5 January 6 January
Last day of tax month 9 First day of tax month 10
Last day for submitting a real time information employer payment summary to apply to tax month 9 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method
19 January
22 January (this is a weekend date)
Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method
5 February 6 February
Last day of tax month 10 First day of tax month 11
| Professional in Payroll, Pensions and Reward | December 2022 – January 2023 | Issue 86 6
Made with FlippingBook - Online magazine maker