March 17th 2022, Release Note: WFM UK | Payroll & Pensions: New Tax Year 2022/2023 – Fourth & HotSchedules Customer Success Portal

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 1^st 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.