As we begin the 2022/2023 tax year (6 April 2022 to 5 April 2023), please find below some useful information about tax, national insurance and some of the upcoming changes that may affect your pay.
We also have some financial planning webinars from Tilney, an award-winning provider of financial planning, investment management and advisory services, available this April. Find out more here.
Tax codes
The basic personal tax allowance this year remains at £12,570; this is the standard rate and the majority of people won’t pay tax on earnings below this.
The rate of tax you pay on earnings over the personal allowance is determined by your place of residence and your own personal circumstances:
- Scotland – S1257L
- England and Northern Ireland – 1257L
- Wales – C1257L
You can view your tax code via your interactive payslip through HR Connect (select ‘My Pay’).
Tax code notifications are received from HMRC on a monthly basis, and these are actioned by the Payroll team. It’s your own personal responsibility to ensure that you are paying the correct tax and keep HMRC updated with any change to circumstances, including address details.
If you live in an area and your code doesn’t reflect this (e.g., you reside in Scotland but you don’t have an ‘S’ at the start of your tax code), contact HMRC on 0300 200 3300. You will need to provide your national insurance number and the University’s Tax Reference: 961/7027438.
National Insurance Rates
We recently updated you that the 2022/2023 employee and employers rate of national insurance are increasing this year by 1.25%. HMRC will use this towards NHS health and social care costs. Rates are due to revert back in 2023/2024.
The employee contribution percentage will increase from 12% to 13.25%, so all earnings over the Primary threshold of £9,880 to £50,270 will be subject to the new rate of 13.25%. The rate for earnings above £50,270 will increase from 2% to 3.25%.
Employers’ national insurance contributions will rise from 13.8% to 15.05%
From July 2022, the primary threshold for national insurance is set to increase from £9,880 to £12,570, so you will not start to pay national insurance until you earn over £12,570, the same rate as tax.
All information on the HMRC rates for 2022/203 and thresholds can be found here.
P60s
P60s are end of year tax statements that show taxable pay. This is your total gross pay, less any deductions that attract tax relief which includes pension contributions and salary sacrifice deductions.
P60s for 2021/2022 year will be issued at the start of May and are available through HR Connect under the ‘My Pay’ section. P60s are also emailed to you if you have completed your e-preferences on HR Connect Self-service. If you want to enable this, login into HR Connect, click on the utility menu drop down on the top right-hand corner of the screen, click on settings and E-form preferences, and complete your details.
New Interactive Payslips on HR Connect
Please see the new interactive payslips through HR Connect; select ‘My Pay’. You will find detailed information on your pay and details of the HMRC thresholds for tax and national insurance.
Payroll cut-off reminder
The payroll cut-off date for all payment claims to be received and authorised is the tenth of the month. Please complete any payment claims as early as possible to allow your manager time to approve them by close of business on this date. Claims that miss the deadline will be processed and paid the following month.
We hope you find this update help, if you have any questions, please contact the Payroll team.