Legislation changes for the 2022/2023 tax year

Summary

The key changes in legislation for the 2022/23 tax year in Sage 50 Payroll.

Description

Below are some of the changes for the 2022/23 tax year.

If you'd like to view legislation changes for the 2023/2024 tax year, visit our separate guide legislation changes for the 2023/2024 tax year >

PAYE

Tax code changes

The emergency tax code for the 2022/23 tax year remains at 1257L, and there are no uplifts in tax codes.

The tables below show the bandwidths for the rest of the UK, Scotland and Wales.

UK Bandwidths & Rates

From (£)	To (£)	Rate (%)	Band
0.01	37,700.00	20	Basic rate
37,700.01	150,000.00	40	Higher rate
150,000.01	excess	45	Additional rate

Scottish Bandwidths & Rates

From (£)	To (£)	Rate (%)	Band
0.01	2,162	19	Starter rate
2,162.01	13,118	20	Basic rate
13,118.01	31,092	21	Intermediate rate
31,092.01	150,000	41	Higher rate
150,000.01	excess	46	Top rate

Welsh Bandwidths & Rates

From (£)	To (£)	Rate (%)	Band
0.01	37,700	20	Basic rate
37,700.01	150,000	40	Higher rate
150,000.01	excess	45	Additional rate

Tax relief for childcare

	Basic Rate (£)	High Rate (£)	Higher Rate (£)
Weekly	55.00	28.00	25.00
Monthly	243.00	124.00	110.00
Annually	2915.00	1484.00	1325.00

National Insurance

For informaion about the changes to National Insurance coming into effect from 6 July 2022, read our handy guide >

Earnings bands

	Weekly (£)	Monthly (£)	Yearly (£)
Lower Earnings Limit (LEL)	123.00	533.00	6,369.00
Primary Threshold (PT)	190.00	823.00	9,880.00
Secondary Threshold (ST)	175.00	758.00	9,100.00
Freeports Upper Secondary Threshold (FUST)	481.00	2083.00	25,000.00
Veterans Upper secondard Threshold (VUST)	967.00	4189.00	50,270.00
Upper Earnings Limit (UEL)	967.00	4189.00	50,270.00
Upper Secondary Threshold (UST)	967.00	4189.00	50,270.00
Apprentice Upper Secondary Threshold (AUST)	967.00	4189.00	50,270.00

NI Category A Rates

For all Class 1 National Insurance category rates, visit this guide >

	Employee Rate (%)	Employer Rate (%)
LEL up to ST	0.00	0.00
St to PT	0.00	15.05
PT to ST	13.25	15.05
ST up to UEL/UST/AUST	13.25	15.05
Excess of UEL/UST/AUST	3.25	15.05

Statutory payments

The Statutory payments rates will be changing from 6 April 2022.

Statutory sick pay

Employees on weekly earnings greater than or equal to the Lower Earnings Limit are entitled to a statutory weekly rate of £99.35 from 6 April 2022.

New statutory sick pay rates:

Unrounded daily rates	Number of working days in week	1 day to pay	2 days to pay	3 days to pay	4 days to pay	5 days to pay	6 days to pay	7 days to pay
£14.1929	7	£14.20	£28.39	£42.58	£56.78	£70.97	£85.16	£99.35
£16.5583	6	£16.56	£33.12	£49.68	£66.24	£82.80	£99.35
£19.87	5	£19.87	£39.47	£59.61	£79.48	£99.35
£24.8375	4	£24.84	£49.68	£74.52	£99.35
£33.1167	3	£33.12	£66.24	£99.35
£49.675	2	£49.68	£99.35
£99.35	1	£99.35

Parental pay and leave

The rates below come into effect from the first Sunday in April.

New Parental pay and leave rates:

Payment	Higher rate %	The standard rate is the lesser of
Payment	Higher rate %	£	%
Statutory Maternity Pay	90.00	156.66	90.00
Statutory Adoption Pay	90.00	156.66	90.00
Statutory Paternity Pay	N/A	156.66	90.00
Shared Parental Pay	N/A	156.66	90.00
Parental bereavement	N/A	156.66	90.00

Student loans

When you set up a student loan deduction for an employee, you must specify whether they're on Plan 1, Plan 2 or Plan 4.

Type	Weekly £	Monthly £	Annual £	Rate %
Plan Type 1	388.36	1,682.91	20,195.00	9.00
Plan Type 2	524.00	2,274.58	27,295.00	9.00
Plan Type 4	487.98	2,114.58	25,375.00	9.00

Postgraduate loans

Postgraduate loans rates are staying the same in the 2022/2023 tax year.

Type	Weekly £	Monthly £	Annual £	Rate %
Standard	403.84	1,750.00	21,000.00	6.00

Employment allowance

For the 2022/23 tax year, Employment allowance is £5,000.

National minimum / living wage rates

The following rates are effective from 1 April 2022.

Age	Hourly Rate (£)
23 and older	9.50
21 - 22	9.18
18 - 20	6.83
16 - 17	4.81
Apprenticeship	Read more >

Apprenticeship Levy

The Apprenticeship Levy Allowance is set to £15,000.

The Apprenticeship Levy Rate is set to 0.5%