Personal tax allowance, NI and income tax rates 2022/23

In the November 2021 Autumn Budget, Chancellor Rishi Sunak announced that some income tax and National Insurance rates and allowances would increase to allow for a 1.25% social care levy. So, based on what we know so far, what will the personal tax allowance, National Insurance and Income Tax rates be for 2022/23?

National Insurance Rates 

Class 1 NICs (Employee and Employers)

Class 3 NICs (Voluntary)

Class 4 NICs (Self Employed

Income Tax personal allowance

The personal tax allowance for 2022/23 are frozen at £12,570.

Basic rate limit

The income tax basic rate limit remains frozen at at £37,700.

Pensions 

The Lower Earnings Limit (LEL) remains at £120 per week. Basic and new state pensions go up 3.1% from 12 April 2022 in line with the CPI increase.

Conclusion

While the figures above reflect our understanding of upcoming income tax, personal allowance and NI changes, if further changes are announced we will let you know. Of course, if you’d like help with your annual tax return, please get in touch.