CIPP Payroll: need to know 2021-2022

The Chartered Institute of Payroll Professionals

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TABLE A: DEDUCTIONS FROM WEEKLY EARNINGS Net earnings

Deduction*

Not exceeding £130.73

Nil

Exceeding £130.73 but not exceeding £472.54 Exceeding £472.54 but not exceeding £710.42

£4.00 or 19% of earnings exceeding £130.73, whichever is the greater

£64.94 plus 23% of earnings exceeding £472.54

Exceeding £710.42

£119.66 plus 50% of earnings exceeding £710.42

TABLE B: DEDUCTIONS FROM MONTHLY EARNINGS Net earnings

Deduction*

Not exceeding £566.51

Nil

Exceeding £566.51 but not exceeding £2,047.65 Exceeding £2,047.65 but not exceeding £3,078.47

£15.00 or 19% of earnings exceeding £566.51, whichever is the greater £281.42 plus 23% of earnings exceeding £2,047.65

Exceeding £3,078.47

£518.51 plus 50% of earnings exceeding £3,078.47

TABLE C: DEDUCTIONS FROM DAILY EARNINGS Net earnings

Deduction*

Not exceeding £18.63

Nil

Exceeding £18.63 but not exceeding £67.32 Exceeding £67.32 but not exceeding £101.21

£0.50 or 19% of earnings exceeding £18.63, whichever is the greater

£9.25 plus 23% of earnings exceeding £67.32

Exceeding £101.21

£17.05 plus 50% of earnings exceeding £101.21

*When applying a percentage the calculation should be done to two decimal places of a penny and the result

rounded to the nearest whole penny, with an exact half penny being rounded down.

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2022-23 Scottish and Welsh Income Tax Rates confirmed 10 January 2022

Scotland and Wales can set their own rates of income tax as devolved nations, Her Majesty’s Revenue and Customs (HMRC) has confirmed the new rates for 2022-23. The following rate are subject to parliamentary approval.

Income Tax Rates – Scotland

Starter rate

19%

1 – 2,162

Basic rate

20%

2,163 – 13,118

Intermediate rate

21%

13,119 – 31,092

Higher rate

41%

31,093 – 150,000

Top rate

46%

Over 150,000

Higher rate threshold - Scotland:

The Chartered Institute of Payroll Professionals

Payroll: need to know

cipp.org.uk

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