News & Insights: Tax rates

Understanding new tax rates from April 2022

New Tax rates

From April 2022 the NI rate is going up in the UK to help pay for Health care and Social care. This page is a simple guide to highlight what the tax rates will be from April 2022

National insurance – Employees

From April 2022, the rates of NICs are due to increase by 1.25 percentage points. This means, for example, that the main rate for employees is due to rise from 12% to 13.25%

This means that for every £100 over the NI threshold rate, you will pay £1.25 extra in NI. If your pay is £1000 over the threshold figure per month, that means a extra £12.50

National insurance – Employers

As well as yourself, your boss will also have to pay more in NI as well. Currently both the employer and the employee both pay NI, over a threshold amount.  The Government has announced that employers’ National Insurance contribution will also be increasing by 1.5% from April 2022. This means the rate for employers will stand at 15.3% on all earnings above the secondary threshold for most employees.

This means £1.50 extra per £100, for example if wages is £1000 over threshold then that is £15 extra in NI.

National Living wage – increase

Apprentices  £4.30 to £4.81

Under 18’s  £4.62 to £4.81

18’s to 20’s  £6.56 to £6.83

21’s to 22’s  £8.36 to £9.18

The National Living wage for 23 and up will change to: £8.91 to £9.50.

For a person on National Living wage of £9.50, working 40 hours a week, that is £23.60  (before tax) extra a week. Over 4 weeks, that is £94.40


Personal Tax rates

The Personal tax rate for 2-22/23 from April is £12,570. That means you pay tax on earning above this figure. This means you do not pay tax on the 1st £241 a week.   For example, if you earn  £300 a week, you only pay income tax  at 20% on £59.  20% of £59 is £11.80 tax. You will also pay NI tax as well




HtE Recruitment News & Insights

This news and insights page has been written by Rick.  Rates of pay quoted is correct on 11/02/22 and the rates do change each year. HtE Recruitment take no responsibility for this post.

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