PAYE tax rates & thresholds
Employee Personal Allowance - £12570 per year
20% on annual earnings above the PAYE tax threshold and up to £37,700
40% on annual earnings from £37,701 to £150,000
45% on annual earnings above £150,000
NIC Threshold upto Upper Earnings Limit (UEL)
National Insurance Category A - Employee 13.25% & Employer 15.05%
National Insurance Category M (under 21) - Employee 13.25% & Employer 0%
Employment Allowance for 2022-23
The Employment Allowance will be increased by £1,000 from 6 April 2022 to £5,000, which will benefit around 495,000 businesses
National Minimum Wage
Aged 23 and above (national living wage rate) : £9.50
Aged 21 to 22 inclusive : £9.18
Aged 18 to 20 inclusive : £6.83
Aged under 18 (but above compulsory school leaving age) : £4.81
Apprentices aged under 19 : £4.81
Apprentices aged 19 and over, but in the first year of their apprenticeship : £4.81
Statutory Pay
Statutory Maternity Pay (SMP) : First 6 weeks - 90% of the employee’s average weekly earnings. Remaining 33 weeks - £156.66 or 90% of the employee’s average weekly earnings, whichever is lower.
Statutory Paternity Pay (SPP) : £156.66 or 90% of the employee’s average weekly earnings, whichever is lower.
Statutory Adoption Pay (SAP) : First 6 weeks - 90% of the employee’s average weekly earnings. Remaining 33 weeks - £156.66 or 90% of the employee’s average weekly earnings, whichever is lower.
Self Assessment NIC Threshold change
From April 2022, self-employed individuals with profits between the Small Profits Threshold (SPT) and the Lower Profit Limit will NOT PAY Class 2 NICs, while allowing individuals to be able to continue to build National Insurance credits. This measure will increase the Primary Threshold (PT) for Class 1 NICs and Lower Profits Limit (LPL) for Class 4 NICs from 6 July 2022, aligning them with the personal allowance for income tax which is set at £12,570 per annum. These thresholds will remain aligned. From April 2022, this measure also reduces Class 2 NICs liabilities to NIL on profits between the Small Profits Threshold (SPT) and LPL. This will ensure that no one earning between the SPT and LPL will pay any Class 2 NICs, while allowing individuals to be able to continue to build up National Insurance credits.