Prepare for NIC Changes
Prepare your payroll for the National Insurance changes in July 2022
From 6 July 2022, some National Insurance Contributions (NICs) thresholds will increase. The primary threshold for 6 July 2022 to 5 April 2023 will rise to:
- £242 per week
- £1,048 per month
- £12,570 per year
To accommodate this change, payroll software, including HMRC's Basic PAYE Tools, will need to be updated. This may happen automatically, or you might need to take action.
It is important that payments due to be made on 6 July 2022 or later are calculated using the correct thresholds. Employers who run their payroll early should check that their software has been updated before processing and reporting these payments.
HMRC expect that all software will be updated by 6 July 2022, so any payments processed after that date should not need to be delayed. If you are unsure about whether or not your software has been updated, please contact your software provider.
If you use Basic PAYE Tools, please note that this software will be updated to take account of National Insurance threshold increases from 4 July 2022. HMRC advise you to wait until after 4 July 2022 to run payroll for any payments made on or after 6 July 2022.
Please talk to us about these changes and how we can help you with your payroll.
For more information visit the GOV.UK website Rates and thresholds for employers 2022 to 2023 - GOV.UK (www.gov.uk)
Please remember that you should always seek professional advice before taking action.
If you and your business need help then you can contact us on 01530 833474 or email email@example.com