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 1 NICs: Employee and Employers (£ per week)

Tax year 2021-22

Tax year 2022-23

Weekly Lower Earnings Limit (LEL)

£120

£123

Weekly Primary Threshold (PT)

£184

£190

Weekly Secondary Threshold (ST)

£170

£175

Upper Earnings Limit (UEL)

£967

£967

Upper Secondary Threshold for under 21s

£967

£967

Apprentice Upper Secondary Threshold (AUST) for under 25s

£967

£967

 

Class 2 NICs: Self Employed

Tax year 2021-22

Tax year 2022-23

Small Profits Threshold (SPT) (£ per year)

£6,515

£6,725

Class 2 contribution rates

Tax year 2021-22

Tax year 2022-23

Annual Profits (£ per year)

£ per week

£ per week

Below SPT

£3.05 (voluntary)

£3.15 (voluntary)

Above SPT

£3.05

£3.15

Class 3 NICs (Voluntary)

Class 3 NICs: Voluntary Contributions (£ per week)

Tax year 2021-22

Tax year 2022-23

Voluntary contributions

£15.40

£15.85

Class 4 NICs (Self Employed

Class 4 NICs: Self Employed (£ per year)

Tax year 2021-22

Tax year 2022-23

Lower Profits Limit (LPL)

£9,568

£9,880

Upper Profits Limit (UPL)

£50,270

£50,270

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.

Need further advice on any of the topics being discussed? Get in touch and see how we can help.

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About Karen Jones

Having worked for one of the world’s largest accountancy firms, Karen Jones uses her tax knowledge and skills to help clients obtain substantial reductions to their tax liabilities.

With an expanding portfolio of tax clients, Karen enjoys the variety her work brings her and particularly likes working with new businesses and people. With a growing number of tax clients, she frequently faces a variety of challenges and relishes the experience she gains as she solves them.

Karen likes the THP ethos: “I like the way the team has a professional, but friendly and down-to-earth approach – it creates a productive atmosphere that benefits everyone.”

Karen’s specialist skills:

  • Personal Taxation
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