Prepare your payroll for the National Insurance changes in July 2022
From 6 July 2022, some employees’ National Insurance Contributions (NICs) thresholds will increase.
The primary threshold for 6 July 2022 to 5 April 2023 will rise to:
£242 per week
£1,048 per month
£12,570 per year
You can find further guidance on the Class 1 National Insurance thresholds for 2022 to 2023 on the Government website here.
To accommodate this change, payroll software, including HMRC's Basic PAYE Tools, will need to be updated. This may happen automatically, or you might need to take action.
It is important that payments due to be made on 6 July 2022 or later are calculated using the correct thresholds. Employers who run their payroll early should check that their software has been updated before processing and reporting these payments.
HMRC expect that all software will be updated by 6 July 2022, so any payments processed after that date should not need to be delayed. If you are unsure about whether or not your software has been updated, please contact your software provider.
If you use Basic PAYE Tools, please note that this software will be updated to take account of National Insurance threshold increases from 4 July 2022. HMRC advise you to wait until after 4 July 2022 to run payroll for any payments made on or after 6 July 2022.
Need help with your payroll - we are here to help
If you have any queries about these changes, please get in touch with our team of experts who will be happy to help.
Are your valuable resources being stretched? Are you struggling with the complexities of PAYE?
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Find out more about our payroll services on our website here.
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