Tax thresholds and tax allowances for tax year 2022/23
Income Tax rates
| Item | 2021/22 | 2022/23 | What does this mean? |
|---|---|---|---|
| Personal Allowance | £12,570 | £12,570 | An employee can earn £12,570 per year before paying any tax at all if they are on the standard 1257L tax code for the next year, that's £242 per week or £1,048 per month |
| Basic rate (20%) | £12,570 to £50,270 | £12,570 to £50,270 | The next £37,700 of earnings on top of the personal allowance will be taxed at the basic rate of 20% |
| Higher rate (40%) | £50,271 to £150,000 | £50,271 to £150,000 | Earnings in excess of the personal allowance and basic rate band will be taxed at the higher rate of 40% |
| Additional rate | 45% | 45% | Any earnings over £150,000 are taxed at 45% |
National Insurance rates
| Item | 2021/22 | 2022/23 | What does this mean? |
|---|---|---|---|
| Primary Threshold (PT) | £184 | £190 | Employees can earn £190 per week before paying Employee's National Insurance at 12% |
| Secondary Threshold (ST) | £170 | £175 | Employees can earn £175 per week before Parasol pay Employer's National Insurance at 15.05% |
| Upper Earnings Limit (UEL) | £967 | £967 | Any weekly earnings above £967 are subject to employee National Insurance contributions at the lower rate of 3.25% |