21st January 2022
TAX
As announced in the March 2021 budget there will be a freeze on the personal allowance and basic rate limit which will remain unchanged until 05 April 2026.
This means the standard tax code of 1257L will continue and their will be no tax code uplift.
NATIONAL INSURANCE – THE NEW HEALTH LEVY
From 6 April 2022 there will be a temporary rise of 1.25% in National Insurance contributions, which will be spent on the NHS, health, and social care in the UK.
From 6 April 2023 the National Insurance rates will revert back to 2021/22 levels and a new Health and Social Care Levy (HSCL) will be introduced as an additional pay field to calculate the additional tax of 1.25%.
The Health and Social Care Levy (HSCL) will apply to those above state pension age who earnings are above the primary threshold.
VETERANS NATIONAL INSURANCE HOLIDAY
Employers will be able to claim National Insurance relief on the earnings of qualifying veterans. The relief is only available for the first 12 consecutive months from the veterans first day of civilian employment.
A person qualifies as a veteran if they have serves at least one day in the regular armed forces, including anyone who has completed at least one day of basic training.
This came into effect from 06 April 2021 however as it was delivered outside of the 2021/2022 tax year, employers will need to pay the associated National Insurance contributions as normal and then manually claim it back from HM Revenue & Customs 06 April 2022 onwards. From 06 April 2022, employers will be able to apply relief through PAYE via a Real Time Information (RTI) submission.
ZERO-RATE SECONDARY NATIONAL INSURANCE CONTRIBUTIONS FOR FREEPORT EMPLOYEES
From 6 April 2022, employers who operate in a Freeport tax site and have Freeport employees will get relief from employers National Insurance.
The relief is restricted to earnings paid in the first three years of the employment.
NATIONAL LIVING & MINIMUM WAGE
From 1 April 2022 the national living and minimum wage rates will increase as follows:
| Aged 23 & above | £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 & over, but in the first year of their apprenticeship | £4.81 |
STATUTORY PAYMENT RATES
From April the statutory rates will increase as follows:
| Statutory Maternity Pay (SMP), Statutory Adoption Pay (SAP), Statutory Paternity Pay (SPP), Statutory Shared Parental Pay (ShPP), Statutory Parental Bereavement Pay (SPBP) | £156.66 |
| Statutory Sick Pay (SSP) | £99.35 |