Tax thresholds and tax allowances for tax year 2022/23

Summary of changes to rates, thresholds and allowances for tax year commencing 6th April 2022.

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%

If you have any questions, call our Employee Support Team on 01925 644 860.