2022 / 2023 PAYE Personal Income Tax Rates and Allowances
Mon, 08 Aug 2022Personal PAYE Allowances
| Allowance | 2020/21 | 2022/23 | Change |
|---|---|---|---|
| Basic | >£12,500 | £12,570 | 0 |
| People born between 6th April 1938 - 5th April 1948 | £12,500 | £12,570 | 0 |
| People born before 6th April 1938 | £12,500 | £12,570 | 0 |
| Married Couples Allowance ( if born before 6th April 1935) | £9,125 | £9,415 | 300 |
| Blind Person's Allowance | £2,500 | £2,600 | 100 |
| Marriage Allowance* | £1,250 | 0 |
Tax Brackets
| Tax Rate | 2021/22 | 2022/23 | Change |
|---|---|---|---|
| Basic rate 20% | TFA - £37,700 | TFA - £37,700 | no change |
| Higher Rate 40% | TFA - £37,500 - £150,000 | £37,501 - £150,000 | no change |
| Additional Rate 45% | £150,001+ | no change |
No changes to the Basic Rate tax bracket and no increases in the Basic Personal Allowance means little defference on the personal tax front in 2021/23. Both the Higher and the Additional Rates see no change either for the coming tax year.
Change in take home pay after tax and NI
| Gross Wage | Net Pay 2021/22 | Net Pay 2022/23 | Difference |
|---|---|---|---|
| £10,000 | £9,836 | £9,940 | +£104 |
| £20,000 | £17,137 | £17,241 | +£104 |
| £30,000 | £23,937 | £24,041 | +£104 |
| £40,000 | £30,737 | £30,841 | +£104 |
| £50,000 | £37,537 | £37,641 | +£104 |
| £75,000 | £52,039 | £52,143 | +£104 |
| £100,000 | £66,539 | £66,643 | +£104 |
| £125,000 | £76,039 | £76,143 | +£104 |
| £150,000 | £90,536 | £90,640 | +£104 |
National Insurance Rates
There have been no changes to the percentage of National Insurance Class 1 contributions, they remain at 12% for employees, and 2% above the upper earnings limit. Employers Class 1 have remained the same at 13.8%. The limits and thresholds have changed, as illustrated in the table below.
National Insurance Bands
| Description | 2021/22 | 2022/23 | Change |
|---|---|---|---|
| Weekly Lower earnings limit, primary Class 1 | £123 | £123 | 0 |
| Weekly Upper earnings limit, primary Class 1 | £967 | £967 | 0 |
| Weekly Primary threshold | £190 | £242 | +52 |
| Weekly Secondary threshold | £175 | £175 | 0 |
| Weekly Upper Secondary Threshold for U21s | £967 | £967 | 0 |
| Apprentice Upper Secondary Threshold for U25s | £967 | £967 | 0 |
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