From 6 July 2022, as an employee you will be able to earn more before you start paying National Insurance. This means you may pay less tax, after accounting for the recent Health and Social Care Levy.
You can use this tool to get an estimate if you’re employed and paid the same amount monthly, by your employer through the PAYE system.
The Primary threshold from 6 July 2022 to 5 April 2023 will be £242 per week and £1,048 per month, equivalent to £12,570 per year (increased from £9,880 per year).
PAYE tax and Class 1 National Insurance contributions
You normally operate PAYE as part of your payroll so HMRC can collect Income Tax and National Insurance from your employees.
Your payroll software will work out how much tax and National Insurance to deduct from your employees’ pay.
Tax thresholds, rates and codes
England and Northern Ireland
|PAYE tax rates and thresholds||2022 to 2023|
|Employee personal allowance||£242 per week
£1,048 per month
£12,570 per year