As we are back round to another tax year, we have a few changes coming into force.
As an employer it is important that you are aware of the following changes to your payroll, whether you are a small business or a large company.
Each year the national minimum wage and living wage changes so here are the current and new rates from April 2022:
23 and over (currently £8.91, going up to £9.50).
21 to 22 (currently £8.36, going up to £9.18).
18 to 20 (currently £6.56, going up to £6.83).
16 to 17 (currently £4.62, going up to £4.81).
Apprentice (currently £4.30, going up to £4.81).
Apprentices are entitled to that rate if they are either under 19 or over 19 and in the first year of their apprenticeship
National Insurance contributions depend on the age of the employee and whether they are an apprentice. So, this is something to look at the same time as the minimum wage.
In this coming 2022/2023 tax year, the Health and Social Care Levy will be delivered through a temporary 1.25% increase in the rate. The National Insurance rate will increase to 13.25%.
Eligible employers can claim relief on the cost of their Employers National Insurance up to £4,000.Employers must have at least one employee (or two directors) on the payroll to be eligible for the Employment Allowance and your National Insurance liabilities must have been less than £100,000 in the previous tax year.
The following conditions are still in place which make you ineligible to claim:
- You’re the director and the only employee that’s paid above the secondary threshold;
- You employ someone for personal, household or domestic work, unless they are a care or support worker.
- You’re a public body or business doing more than half of your work in the public sector, unless you are a charity.
- You’re a service company working under IR35 rules and your income is the earnings of the intermediary.
Tax relief for childcare
You can get tax relief for childcare as per below:
Weekly: basic rate £55, higher rate £28, higher rate £25.
Monthly: basic £243, high £124, higher £110.
Annually: basic £2,915, high £1,484, higher £1,325.
Statutory sick pay weekly rate will be £99.35, maternity pay weekly rate will be £156.66, paternity pay weekly rate will be £156.66.
