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The zero rates of secondary contributions for employers of armed forces veterans (up to the veterans upper secondary threshold) and for employers of employees working in freeport tax sites (up to the freeport upper secondary threshold) are also discussed in the guide.
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Check how the National Insurance changes will affect you Published: 21 June 2022 Emailed: 22 June 2022
Her Majesty's Revenue & Customs (HMRC) has released a tool that allows employees to check how the recent and upcoming changes in National Insurance (NI) affect their earnings.
In the spring statement delivered back in March, it was announced that the Primary Threshold (PT) will be increasing from £823 a month to £1,048 from 6 July 2022. From April the rate of NI contributions was increased by 1.25 percentage points. From April 2023 the rate will go back to what it was but an additional Health and Social Care Levy of 1.25% on earnings subject to NI will be deductible. The purpose of the tool is to allow employees to get an estimate of how all the NI changes will affect their yearly take home pay.
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National income tax statistics released for 2022-23 Published: 1 July 2022 Emailed: 6 July 2022
Her Majesty's Revenue and Customs (HMRC) has released the latest income tax liabilities statistics: tax year 2019-20 to 2022-23.
The statistics for the current tax year are based on HMRC's annual survey of personal incomes. The data is extracted from a representative sample of individuals on HMRC's systems. Projections from previous years have also been revised. The affects of the pandemic, and changes in income tax policy in the UK and Scotland tax systems are all reflected in the statistics.
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New NI primary threshold comes into effect Published: 6 July 2022 Emailed: 6 July 2022
As announced in the spring statement in March, the primary threshold (PT) for National Insurance (NI) calculations changes on 6 July 2022. Any NI calculations on payments made from today must be calculated based on the new threshold.
From 6 April 2022 to 5 July 2022, the PT was £9,880, which is equivalent to £823 per month or £190 per week.
From 6 July 2022, the PT is £12,570, which is equivalent to £1,048 per month or £242 per week.
For directors, the PT for 2022/23 is £11,908 (13 weeks at £9,880 and 39 weeks at £12,570).
It is important that before making any payments, payroll professionals confirm with their payroll software provider that software updates have been made to account for the new PT. Back to contents
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