08-07-2022

In the Spring Statement, the chancellor at the time, Rishi Sunak, confirmed an alignment between the UK personal tax allowance and the National Insurance primary threshold for employees.

As such, the original primary threshold for 2022/23 of £9,880 increased to £12,570 from the 1st of July. This, therefore, reduces the NI liability for employees from this date and in some cases means that individuals will pay less National Insurance than in 2021/22. For higher earners however, the impact will be a reduction in the Health and Social Levy increase which came into effect from the 6th of April of 1.25%. Below is a chart confirming the change:

Employers must have ensured that staff are briefed on this unusual in-year change and have information of the impact it will have on them prior to what could be the first payday showing the change to avoid high call volume!


"I know it is not till next June but just booked on The Payroll Centre's Annual conference. This is my must do course/conference of the year, having been almost every year for 10+ years, only missing for my wedding and having a baby, I even went one year with a 3 month old in tow! "

Andi Herrington
Director of Payroll Services at Wallis Payroll Ltd

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