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Legislation changes for the 2022/2023 tax year

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Summary

This guide explains the key changes in legislation that have been announced so far and how they affect Sage 50cloud Payroll, ahead of the 2022/23 tax year.

Description

Below are some of the changes for the 2022/23 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
37,700.0020Basic rate
37,700.01150,000.0040Higher rate
150,000.01excess45Additional rate

Scottish Bandwidths & Rates

From (£)To (£)Rate (%)Band
0.012,12619Starter rate
21,62.0113,11820Basic rate
13,118.0131,09221Intermediate rate
31,092.01150,00041Higher rate
150,000.01excess46Top rate

Welsh Bandwidths & Rates

From (£)To (£)Rate (%)Band
0.0137,70020Basic rate
37,700.01150,00040Higher rate
150,000.01excess45Additional rate

Tax relief for childcare


Basic Rate (£)High Rate (£)Higher Rate (£)
Weekly55.0028.0025.00
Monthly243.00124.00110.00
Annually2915.001484.001325.00

National Insurance

In the 2022/23 tax year only, the Health and Social Care Levy will be delivered through a temporary 1.25% increase in the main and additional rates of Class 1 and Class 4 NICs. Find out more >

Earnings bands


Weekly (£)Monthly (£)Yearly (£)
Lower Earnings Limit (LEL)123.00533.006,369.00
Primary Threshold (PT)190.00823.009,880.00
Secondary Threshold (ST)175.00758.009,100.00
Freeports Upper Secondary Threshold481.002,083.0025,000.00
Upper Earnings Limit (UEL)967.004189.0050,270.00
Upper Secondary Threshold (UST)967.004189.0050,270.00
Apprentice Upper Secondary Threshold (AUST)967.004189.0050,270.00

NI Category A Rates

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


Employee Rate (%)Employer Rate (%)
LEL up to ST0.000.00
St to PT0.0015.05
PT to ST13.2515.05
ST up to UEL/UST/AUST13.2515.05
Excess of UEL/UST/AUST3.2515.05

Statutory payments

The Statutory payments rates will be changing from 5 April 2022.

Statutory sick pay

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

New statutory sick pay rates:

Unrounded daily ratesNumber of working days in week1 day to pay2 days to pay3 days to pay4 days to pay5 days to pay6 days to pay7 days to pay
£14.19297£14.20£28.39£42.58£56.78£70.97£85.16£99.35
£16.55836£16.56£33.12£49.68£66.24£82.80£99.35
£19.875£19.87£39.47£59.61£79.48£99.35

£24.83754£24.84£49.68£74.52£99.35


£33.11673£33.12£66.24£99.35



£49.6752£49.68£99.35




£99.351£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
£
%
Statutory Maternity Pay90.00
156.66
90.00
Statutory Adoption Pay
90.00
156.66
90.00
Statutory Paternity PayN/A156.66
90.00
Shared Parental Pay
N/A
156.66
90.00
Statutory adoption payN/A156.66
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 £4,000.


National minimum / living wage rates

The following rates are effective from 1 April 2022.

AgeHourly Rate (£)
23 and older 9.50
21 - 229.18
18 - 206.83
16 - 174.81
ApprenticeshipRead more >

Apprenticeship Levy

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

The Apprenticeship Levy Rate is set to 0.5%