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.