End of the payroll year is around the corner in the UK – but don’t worry, we are here to help you get prepped and ready to go with the highlights outlined below.

National Min Wage

Minimum wage is increasing effective from 1^st April 2022. Please ensure all April employee payments are compliant with the new rates.

Please ask the payroll team to assist with any calculations as required.

https://www.gov.uk/national-minimum-wage-rates

National Insurance Rates

As previously advised, from 6^th April, National Insurance is increasing by 1.25% for all employees, employers and the self-employed. This is due to the introduction of the Health and Social Care Levy to provide extra funding for the NHS, health and social care.

For our payroll clients, we will be including a payslip message from April 2022 onwards as per HMRC instructions as follows: 1.25% uplift in NICs funds NHS, health & social care

Full details on Gov.UK on the National Insurance increase

National Insurance Thresholds

The threshold for employees to pay National Insurance is increasing in April and again in July this year.

6^th April onwards: £823 monthly earnings before NI is paid

6^th July onwards: £1,048 monthly earnings before NI is paid.

For company directors this means the highest annual salary you can take without incurring employee’s NI is £11,908.00 or £992.00 per month.

https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2022-to-2023

Employment Allowance

Employment allowance has increased for 2022-23 from £4k to £5k.

In order to qualify for the allowance the company’s total employer NICs for 21-22 must be below £100k. If the company is deemed as connected to another company then the combined value should be considered and only one company can claim.

https://www.gov.uk/claim-employment-allowance/eligibility

Key dates to keep in mind

Here are the important dates to note on your calendar as you step through the UK payroll year end:

5th April – The end of the tax year

19th April – End of the tax year filing deadline

31st May – Deadline to provide employees with P60s

6th July – Deadline to report employer class 1A NICs for Payrolled BIK (P11D(b))

We know that payroll management can be a challenge for any business owner. BM Connect’s specialist technology and advanced knowledge and expertise keep you compliant, save you time and make running payroll a stress-free experience.

Contact us today to find out more about our integrated, flexible and affordable management reporting, accounting and payroll solutions. Our advanced tech-enabled outsourced services give you real-time visibility into your business and deliver value cost-effectively and efficiently.