NATIONAL MINIMUM WAGE & NIC - 2022/23

From the 6th April, the new 2022/23 tax year will begin. As the new Tax Year begins so do a few changes.

New Year, New Rates! The national minimum wage (NMW) and national living wage (NLW) rates will increase on the 1st April.

• NLW workers aged 23 or older from £8.91 to £9.50.

• NMW workers aged 21 and 22 from £8.36 to £9.18, and for those aged 18-20 from £6.56 to £6.83.

• NMW workers younger than 18 who are no longer compelled to attend school, from £4.62 to £4.81.

• NMW first year apprentices or under-19s from £4.30 to £4.81.

Numerous statutory pay rates including maternity, paternity, adoption, shared parental leave and parental bereavement pay will increase from £151.97 to £156.66 on the 3rd April.

Furthermore, from 6th April, sick pay will rise from £96.35 to £99.35, and the statutory redundancy weekly cap will also increase.

The annual threshold for NI contributions increased to £9,568 a year from £9,500 for employed workers. This means that you don’t pay NI contributions on anything you earn below that level. If you are self-employed and earn less than £6,515 you will not have to pay NI.

If you are employed, you pay class one NI contributions of:

• 12% on earnings between £797 to £4,189 a month

• 2% on earnings above £4,189 a month

NI contributions are being increased by 1.25% from April next year to help pay for health and social care costs.

For more information: Rates and thresholds for employers 2022 to 2023 - GOV>UK (www.gov.uk)

As always, here at As Robins we will ensure that you stay compliant with all the latest regulations and keep you updated. If you have any queries, we are here to help.

Kind Regards,

As Robins Team