Rates and thresholds for employers 2022 to 2023

From April 2022 the rate of National Insurance contributions you pay will change for one year. The amount you contribute will increase by 1.25 percentage points which will be spent on the NHS and social care across the UK.


Tax thresholds, rates and codes

The amount of Income Tax you deduct from your employees depends on their tax code and how much of their taxable income is above their Personal Allowance.

England and Northern Ireland

PAYE tax rates and thresholds 2022 to 2023
Employee personal allowance £242 per week
£1,048 per month
£12,570 per year
English and Northern Irish basic tax rate 20% on annual earnings above the PAYE tax threshold and up to £37,700
English and Northern Irish higher tax rate 40% on annual earnings from £37,701 to £150,000
English and Northern Irish additional tax rate 45% on annual earnings above £150,000

Scotland

PAYE tax rates and thresholds 2022 to 2023
Employee personal allowance £242 per week
£1,048 per month
£12,570 per year
Scottish starter tax rate 19% on annual earnings above the PAYE tax threshold and up to £2,162
Scottish basic tax rate 20% on annual earnings from £2,163 to £13,118
Scottish intermediate tax rate 21% on annual earnings from £13,119 to £31,092
Scottish higher tax rate 41% on annual earnings from £31,093 to £150,000
Scottish top tax rate 46% on annual earnings above £150,000

Wales

PAYE tax rates and thresholds 2022 to 2023
Employee personal allowance £242 per week
£1,048 per month
£12,570 per year
Welsh basic tax rate 20% on annual earnings above the PAYE tax threshold and up to £37,700
Welsh higher tax rate 40% on annual earnings from £37,701 to £150,000
Welsh additional tax rate 45% on annual earnings above £150,000

Income Tax rates and thresholds are subject to parliamentary approval.

Emergency tax codes

The emergency tax codes from 6 April 2022 are:

  • 1257L W1
  • 1257L M1
  • 1257L X

Class 1 National Insurance thresholds

You can only make National Insurance deductions on earnings above the lower earnings limit.

Class 1 National Insurance thresholds 2022 to 2023
Lower earnings limit £123 per week
£533 per month
£6,396 per year
Primary threshold £190 per week
£823 per month
£9,880 per year
Secondary threshold £175 per week
£758 per month
£9,100 per year
Freeport upper secondary threshold £481 per week
£2,083 per month
£25,000 per year
Upper secondary threshold (under 21) £967 per week
£4,189 per month
£50,270 per year
Apprentice upper secondary threshold (apprentice under 25) £967 per week
£4,189 per month
£50,270 per year
Veterans upper secondary threshold £967 per week
£4,189 per month
£50,270 per year
Upper earnings limit £967 per week
£4,189 per month
£50,270 per year

Class 1 National Insurance rates

Employee (primary) contribution rates

Deduct primary contributions (employee’s National Insurance) from your employees’ pay through PAYE.

National Insurance category letter Earnings at or above lower earnings limit up to and including primary threshold Earnings above the primary threshold up to and including upper earnings limit Balance of earnings above upper earnings limit
A 0% 13.25% 3.25%
B 0% 7.1% 3.25%
C nil nil nil
F (Freeport) 0% 13.25% 3.25%
H (apprentice under 25) 0% 13.25% 3.25%
I (Freeport – married women and widows reduced rate) 0% 7.1% 3.25%
J 0% 3.25% 3.25%
L (Freeport – deferment) 0% 3.25% 3.25%
M (under 21) 0% 13.25% 3.25%
S (Freeport – state pensioner) nil nil nil
V (veteran) 0% 13.25% 3.25%
Z (under 21 – deferment) 0% 3.25% 3.25%

National Minimum Wage

The National Minimum Wage is the minimum pay per hour almost all workers are entitled to by law.

These rates apply from 1 April 2022.

Category of worker Hourly rate
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 Maternity, Paternity, Adoption, Shared Parental and Parental Bereavement Pay

  • Statutory Maternity Pay (SMP)
  • paternity or adoption pay
  • qualifying week
  • average weekly earnings
  • leave period

These rates apply from 3 April 2022.

Type of payment or recovery 2022 to 2023 rate
Statutory Maternity Pay – weekly rate for first 6 weeks 90% of the employee’s average weekly earnings
Statutory Maternity Pay – weekly rate for remaining weeks £156.66 or 90% of the employee’s average weekly earnings, whichever is lower
Statutory Paternity Pay (SPP) – weekly rate £156.66 or 90% of the employee’s average weekly earnings, whichever is lower
Statutory Adoption Pay (SAP) – weekly rate for first 6 weeks 90% of the employee’s average weekly earnings
Statutory Adoption Pay – weekly rate for remaining weeks £156.66 or 90% of the employee’s average weekly earnings, whichever is lower
Statutory Shared Parental Pay (ShPP) – weekly rate £156.66 or 90% of the employee’s average weekly earnings, whichever is lower
Statutory Parental Bereavement Pay (SPBP) – weekly rate £156.66 or 90% of the employee’s average weekly earnings, whichever is lower
SMP, SPP, ShPP, SAP or SPBP – proportion of your payments you can recover from HMRC 92% if your total Class 1 National Insurance (both employee and employer contributions) is above £45,000 for the previous tax year

103% if your total Class 1 National Insurance for the previous tax year is £45,000 or lower

Employment Allowance

Employment Allowance allows eligible employers to reduce their annual National Insurance liability by up to the annual allowance amount.

Allowance 2022 to 2023 rate
Employment Allowance £4,000

Company cars: advisory fuel rates

Use advisory fuel rates to work out mileage costs if you provide company cars to your employees.

These rates apply from 1 December 2021.

Engine size Petrol – amount per mile LPG – amount per mile
1400cc or less 13 pence 9 pence
1401cc to 2000cc 15 pence 10 pence
Over 2000cc 22 pence 15 pence

 

Engine size Diesel – amount per mile
1600cc or less 11 pence
1601cc to 2000cc 13 pence
Over 2000cc 16 pence

Hybrid cars are treated as either petrol or diesel cars for this purpose.