There are some interesting changes to Payroll ahead of us for the tax years 2022-23 & 2023-24. Significant changes include a minimum wage increase for employees aged 21-22 from £6.56 to £9.18 per hour. HAPPY DAYS! Such increase was introduced to bring employees at the age of 21-22 closer to the living wage rate. (The National Living Wage for employees over 23 is £9.50 from April 2022.)
The Living Wage Foundation announced in November 2021 the ‘Real Living Wage’ of £9.90 for those living in UK (and £11.05 for those living in London) which employees over the age of 18 should receive in line with CPI (currently 5.5%). This minimum hourly rate is currently optional, not compulsory, and can be suggested to an employer.
In addition there are changes to the Health and Social Care Levy (H&SC). We all have been informed that 1.25% increase on NIC for both, employee & employer, will take effect from April 2022 for the tax year 2022-23 as well as for the self-employed NIC Class 4.
A new H&SC levy will be introduced in 2023-24! It will be classed as a tax and must be reported on separately on FPS and Payslips using NIC thresholds (this means that the payslip will show deductions – tax, employee NI and H&CS Levy as well as other deductions, like pension).
We may have got over the period of furlough pay and covid-SSP ( scheme ending 17th March and final submission is by 24th March) but the H&CS Levy will keep stepping on our toes for years to come.
Call us today if you need Payroll advice or would like to move your Payroll over to us.
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