Businesses are being advised to prepare their payroll for National Insurance changes which are coming into effect from next month.
From 6 July 2022, some National Insurance Contribution (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
Please head to the gov.uk website for more information about Class 1 National Insurance thresholds for 2022/23.
Preparing your payroll for the changes
To accommodate the changes, payroll software, including HMRC’s Basic PAYE Tools, will need to be updated. This may happen automatically, or you might need to take action yourself.
It’s 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 expects all software to be updated by 6 July 2022, so any payments processed after that date shouldn’t need to be delayed. If you’re 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.
For further information about the National Insurance changes or if you need help with your payroll, please get in touch with PKB.
To read news and blogs from Rebecca Austin, click here >>
