Please see below updates for this coming April. There is still some debate around delaying the NI increase, I think we are all keeping our fingers crossed that this is delayed or cancelled.
Tax Allowances
Tax codes will not be changing, if you are currently on a 1257L tax code, this will remain the same for 2022. This means you can earn up to £242 per week or £1,048 per month before paying tax.
National Living Wage
The national living wage, minimum wage and for those aged 23 and over will increase to £9.50 from £8.91.
National Insurance
The National Insurance Threshold will increase from 6th April to £190 weekly and £823 monthly.
Student Loans
Student loan and postgraduate loan recovery is also increasing in the new tax year:
Plan 1 student loan will be deducted on earnings over £382 per week and £1,657 per month.
Plan 2 student loan will be deducted on earnings over £524 per week and £2,274 per month.
Postgraduate loan will be deducted on earnings over £403 per week and £1,7500 per month.
NHS National Insurance Levy
There is set to be an increase of an overall 2.5% for National Insurance, this is supposed to help fund the NHS. The suggested wording from HMRC is “1.25% uplift in NIC’s funds NHS, Health & Social Care”. These are increases are 1.2% in both Employees and Employers National Insurance, bringing the total increase to 2.5%.
If you need any information on Minimum Processing Rates to encompass these changes, please contact your Account Manager by email or ☎️ 01252 863700.
Minimum processing rates will vary depending on sector due to holiday pay. If you are in the education sector, please ask your provider on what percentage holiday pay is being calculated, so that you don’t fall foul of any tribunal claims – please read our blog on this subject.