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Harshal Magar
Mar 25, 2022
In General Discussions
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.
Rates & Threshold changes from April 2022 content media
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Harshal Magar
Oct 01, 2021
In General Discussions
The government announced tax changes to fund £12 billion a year to be spent on the NHS and social care across the UK. National Insurance contributions (NICs) will increase by 1.25% for one year only for employees, employers and the self-employed from April 2022. This will cover both Class 1 (employee and employer), Class 1A and 1B and Class 4 (self-employed) NICs. Those above State Pension Age are not impacted by the April 2022 changes. From April 2023, a new ringfenced Health and Social Care Levy of 1.25% will be introduced which will apply to those who pay Class 1 (employee and employer), Class 1A and 1B and Class 4 (self-employed) NICs and will also be extended to those over State Pension age who are in work. When the new levy comes into effect, National Insurance rates will revert back to current levels. The levy will also apply to individuals above State Pension age with employment income or profits from self-employment above £9,568. The levy will be administered by HMRC and collected through the current reporting and collection procedures for NICs – Pay As You Earn and Income Tax Self Assessment. Like National Insurance, levy contributions will apply UK-wide, people will pay the same in England, Scotland, Wales and Northern Ireland. From 2023-24, levy contributions will need to appear as a separate item on payslips. Where possible a generic message should be included payslips for the next tax year (2022-23). More information on payslip requirements will be available in due course. The government will also increase by 1.25% from April 2022 the rate of income tax which is paid by people who receive dividend income from shares.
NIC Changes from April 2022 content media
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Harshal Magar

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