Upcoming Payroll changes for the tax years 2022-23 & 2023-24!

Member News

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.
Call now on 01908 597047 or email us at hello@crouchers.co.uk