What’s Changing?
This release note contains all changes made in the system required to allow legislative compliance from April 2022.
Release date: 17th March 2022.
Reason for the Change
Her Majesty’s Revenue and Customs (HMRC) are implementing changes to legislation agreed by the UK Government, for the tax year beginning 6th April 2022.
Customers Affected
All customers with the Payroll or Pension module with pay dates on or after 6th April 2022.
Release Notes - Contents
(select a heading from the list below to be taken to that part of the release note)
Payroll Statutory Information Page
PAYE – Tax threshold rates for 2022
Student Loans and Post Graduate Loans
National Minimum Wage (NMW) and National Living Wage (NLW)
Statutory Payments - Sickness (SSP), Maternity (SMP), Paternity (SPP), Adoption (SAP), Shared Parental (ShPP), Parental Bereavement (SPBP)
Pension
Tax Code Uplift
Allowances
Rolling Over the Portal
Release Notes
Payroll Statutory Information Page
Within the Payroll module, there is a Statutory Information page that contains the rates and allowances for the current and previous tax years. This page is updated annually with the new tax year’s rates.
- To view this page, go to Payroll > Administration > Payroll Statutory Information
Fig.1 – Payroll Statutory Information Page - rates for 2022/23
PAYE – Tax threshold rates for 2022
The Emergency Tax Code of 2022/2023 will remain as 1257L
All Week 1 Month 1 Indicators will not be taken forward into 2022/2023 for any tax code.
Tax Code Uplift
All L suffix codes will not increase
All M suffix codes will not increase
All N suffix codes will not increase
PAYE Thresholds
| Earnings Period | Threshold |
|---|---|
| Weekly | £242 |
| Monthly | £1,048 |
The UK rate of Income Tax (excluding Scotland and Wales).
|
Tax Rate
|
Rate
|
Income after allowances from
|
Income after allowances to
|
|---|---|---|---|
|
Basic Tax Rate
|
20%
|
|
£37,700
|
|
Higher Tax Rate
|
40%
|
£37,701
|
£150,000
|
|
Additional Tax Rate
|
45%
|
£150,001+
|
|
The Scottish rate of Income Tax (SRIT).
|
Tax Rate
|
Rate
|
Income after allowances from
|
Income after allowances to
|
|---|---|---|---|
|
Starter Basic Tax Rate
|
19%
|
£1
|
£2,162
|
|
Basic Tax Rate
|
20%
|
£2,163
|
£13,118
|
|
Intermediate Tax Rate
|
21%
|
£13,119
|
£31,092
|
|
Higher Tax Rate
|
41%
|
£31,093
|
£150,000
|
|
Additional Tax Rate
|
46%
|
£150,001 +
|
The current Welsh rate of Income Tax (WRIT).
|
Tax Rate
|
Rate
|
Income after allowances from
|
Income after allowances to
|
|---|---|---|---|
|
Basic Tax Rate
|
20%
|
|
£37,700
|
|
Higher Tax Rate
|
40%
|
£37,701
|
£150,000
|
|
Additional Tax Rate
|
45%
|
£150,001+
|
PAYE – National Insurance Threshold rates for 2022.
| NI Threshold | Weekly | Fortnightly | Lunar | Monthly | Annually |
|---|---|---|---|---|---|
| Lower Earnings Limit (LEL) | £123 | £246 | £492 | £533 | £6,396 |
| Primary Threshold (PT) Up to 5th July 2022 | £190 | £380 | £760 | £823 | £9,880 |
| Primary Threshold (PT) from 6th July 2022 | £242 | £484 | £967 | £1,048 | £12,570 |
| Primary Threshold (PT) Directors | N/A | N/A | N/A | N/A | £11,908 |
| Secondary Threshold (ST) | £175 | £350 | £700 | £758 | £9,100 |
| Freeport Upper Secondary Threshold (FUST) | £481 | £962 | £1,924 | £2,083 | £25,000 |
| Upper Secondary Threshold (UST) | £967 | £1,934 | £3,867 | £4,189 | £50,270 |
| Apprentice Upper Secondary Threshold (AUST) | £967 | £1,934 | £3,867 | £4,189 | £50,270 |
| Veterans Upper secondary Threshold (VUST) | £967 | £1,934 | £3,867 | £4,189 | £50,270 |
| Upper Earnings Limit (UEL) | £967 | £1,934 | £3,867 | £4,189 | £50,270 |
PAYE – National Insurance Contribution Percentages for 2022.
| Employee's Contributions | Employer's Contribution | ||||||||
| Table Letter | Earnings below LEL | Earnings above LEL up to PT | Earnings above PT up to UEL | Earnings above UEL | Earnings below LEL | Earnings above LEL up to ST | Earnings above ST up to FUST | Earnings above FUST up to UST / AUST / VUST | Earnings above UST / AUST / VUST |
| A | NIL | 0% | 13.25% | 3.25% | NIL | 0% | 15.05% | 15.05% | 15.05% |
| B | NIL | 0% | 7.1% | 3.25% | NIL | 0% | 15.05% | 15.05% | 15.05% |
| C (over state pension age) | NIL | NIL | NIL | NIL | NIL | 0% | 15.05% | 15.05% | 15.05% |
| F (Freeport Standard) | NIL | 0% | 13.25% | 3.25% | NIL | 0% | 0% | 15.05% | 15.05% |
| H (Apprentice under 25) | NIL | 0% | 13.25% | 3.25% | NIL | 0% | 0% | 0% | 15.05% |
| I (Freeport MWRRE) | NIL | 0% | 7.1% | 3.25% | NIL | 0% | 0% | 15.05% | 15.05% |
| J (Deferment) | NIL | 0% | 3.25% | 3.25% | NIL | 0% | 15.05% | 15.05% | 15.05% |
| L (Freeport deferment) | NIL | 0% | 3.25% | 3.25% | NIL | 0% | 0% | 15.05% | 15.05% |
| M (Under 21) | NIL | 0% | 13.25% | 3.25% | NIL | 0% | 0% | 0% | 15.05% |
| S (Freeport over pension age) | NIL | NIL | NIL | NIL | NIL | 0% | 0% | 15.05% | 15.05% |
| V (Veterans Standard) | NIL | 0% | 13.25% | 3.25% | NIL | 0% | 0% | 0% | 15.05% |
| Z (Under 21 deferment) | NIL | 0% | 3.25% | 3.25% | NIL | 0% | 0% | 0% | 15.05% |
Student Loans and Post Graduate Loans
From 6th April 2022 the breakdown between the three student loan types is:
- Plan 1 has an Earnings Threshold of £20,195 per year
- Plan 2 has an Earnings Threshold of £27,295 per year
- Plan 4 has an Earnings Threshold of £25,375 per year
If an employee knows they have a student loan, but not which Plan Type, you should select Plan Type 1 as a default. HMRC will correct this with an SL1/SL2 as appropriate.
From 6th April, the Thresholds for Post Graduate loans will be:
- The Earnings Threshold will be £21,000 per year
National Minimum Wage (NMW) and National Living Wage (NLW)
From the pay period starting on or after 1st April 2022:
| Age Range | Old Rate per hour | New Rate per hour |
| Apprentices | £4.30 | £4.81 |
|
Apprentices over 19 but in 1sy year of Apprenticeship |
£4.30 | £4.81 |
| Under 18 years old (but above school leaving age) | £4.62 | £4.81 |
| 18 to 20 years old | £6.56 | £6.83 |
| 21 to 24 years old | £8.36 |
£9.18 |
| 25 years old and over | £8.91 | £9.50 |
More information on the living wage and latest rates for NMW can be found at: http://www.gov.uk/national-minimum-wage-rates.
Statutory Payments - Sickness (SSP), Maternity (SMP), Paternity (SPP), Adoption (SAP), Shared Parental (ShPP), Parental Bereavement (SPBP)
Statutory Parental Payment rates will update from 3rd April 2022 (the 1st Sunday of April).
Statutory Sick Payment rates will update from 6th April 2022.
| Statutory Pay | Per Week Rate |
|---|---|
| Statutory Adoption Pay | £156.66 |
| Statutory Shared Parental Pay | £156.66 |
| Statutory Paternity Pay | £156.66 |
| Statutory Maternity Pay | £156.66 |
| Statutory Parental Bereavement Pay | £156.66 |
| Statutory Sick Pay | £99.35 |
Upon rolling over into the tax year 2022/2023, all Statutory Payment Schedules will be regenerated based on the above rates where applicable.
Pension
Please Note: the Automatic Enrolment Qualifying Earnings rates have not yet been announced by The Pensions Regulator. This section will be updated as soon as the information is made available.
| Qualifying Earnings Lower Threshold | Qualifying Earnings Upper Threshold | Automatic Enrolment Trigger | |||
|---|---|---|---|---|---|
| Period | Amount | Period | Amount | Period | Amount |
| Weekly | £123 | Weekly | £967 | Weekly | £192 |
| Fortnightly | £246 | Fortnightly | £1,934 | Fortnightly | £384 |
| Lunar | £492 | Lunar | £3,867 | Lunar | £768 |
| Monthly | £533 | Monthly | £4,189 | Monthly | £833 |
The Pension Diary will automatically update to 2022/2023 when your portal is rolled forward into 2022/2023
For 2022/2023 there are no planned rises in the contribution percentages, so the rates remain the same as the 2021/2022 tax year.
| Minimum Contributions for Qualifying Earnings | |
|---|---|
| Minimum Total Contributions | 8% |
| Minimum Employer Contribution | 3% |
| Required Member Contribution where Employer is minimum | 5% |
| Certification for Pensionable pay for | |||
|---|---|---|---|
| Tier 1 | Tier 2 | Tier 3 | |
| Minimum Total Contributions | 9% | 8% | 7% |
| Minimum Employer Contribution | 4% | 3% | 3% |
| Required Member Contribution where Employer is minimum | 5% | 5% | 4% |
If you require any changes to your pension scheme’s default percentage rates because you have tier certification, please send details to your payroll specialist who will ensure the changes are made from the start of the new tax year.
Tax Code Uplift
There will be no uplift to tax codes in the 2022/2023 tax year.
Therefore, the Emergency Tax Code of 2022/2023 will remain 1250L.
All Week 1 Month 1 Indicators will not be taken forward into 2022/2023 for any tax code.
Allowances
- Employment Allowance - £5,000
- Apprenticeship Levy Allowance - £15,000
Rolling Over the Portal
Your payroll specialist will contact you near to the completion of your final pay run for the 2021/2022 tax year, to arrange for your portal to be rolled forward to the 2022/2023 tax year. When rolled forward, all rates and allowances will automatically update for the 2022/2023 tax year.
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