Call for Assistance: 02033 259 341
Spondoo Accounting
Call for Assistance: 02033 259 341
Spondoo Accounting

Why has my net pay increased from July 2022?  

July 18, 2022

Employee National Insurance thresholds changes – 6th July 2022 

The government temporarily increased the NIC Primary Threshold and Lower Profits Limit for the 2022/2023 tax year from 6th July 2022. This means you will likely experience a change in your take-home pay on and after this date – depending on how much you earn.  

The new National Insurance Rates 

Your National Insurance Contribution (NIC) rates will depend on your employment status: 

Employed individuals NIC from July 2022

If you are employed, you will not pay any NIC if you earn less than £12,570. 

The NIC rates on income of £12,570 to £50,270 a year (£1,048 to £4,189 a month) have already increase by 1.25% from 12% to 13.25% from 6th April 2022.  

Any income above £50,270 a year (over £4,189 a month) will attract a 3.25% rate from the previous 2%. 

Self-employed individuals NIC from July 2022 

If you are self-employed, your annual profits between £9,881 and £50,270 will attract a 10.25% NIC rate. Your profits that are above £50,270 are taxed at a National Insurance rate of 3.25%. 

This will be in addition to the £3.15 you pay if your self-employed profits are £6,725 or more. 

Employers NIC from July 2022

As an employer, from April 2022 you will pay the National Insurance contributions rate of 15.05% for every employee earning income above the secondary threshold – £9,100 to £50,270 a year (£758 to £4,189 a month). This is a 1.25% increase from the initial 13.8% national insurance payments for earnings over £8,840 a year. 

There are no specific changes for the employer from July 2022, as the secondary threshold for national insurance remains unchanged. 

You will not pay the additional 1.25% levy for: 

  • Armed forces veterans 
  • Apprentices aged below 25 
  • Employees aged below 21 
  • Employees in Freeports (areas free from certain trade taxes) on less than £25,000 a year. 

How much national insurance will I pay? 

You may experience a fall in your national insurance bill in July compared to April and pay less national insurance in July 2022 than you did in the 2021/22 tax year. However, if you earn more than £50,000 a year it is likely that you will still pay more national insurance in July 2022 than you were paying in the 2021/22 tax year. 

National Insurance Calculator 

You can use the HMRC calculator to estimate how the new rates will affect you and also understand your National Insurance position now compared to this time last year. 

Need NIC guidance? 

For guidance and support: 

more tips

Can You Claim Food as a Business Expense?

The golden rule when claiming business expenses is that the cost must be “wholly and exclusively” for business purposes. So, where do you stand when it comes to food and drink? After all, everyone needs these things to survive. When does it become an allowable expense? Read on to find out when your business can claim food and drink as an expense.

Self-Employed National Insurance Class 2 and Class 4 Rates

If you are sixteen and over, self-employed (sole trader or in a partnership) and making a profit befitting the ‘small profits threshold’, you are liable to pay national insurance.

Key UK Personal Tax Year Dates & Deadlines 2021/2022

Are deadlines creeping up on you? Spondoo is here to ensure you keep on top of things and take control again. These are the important dates you should take note of.

How To Set Up A Limited Company 

A Step-by-Step Guide  This is an easy-to-understand, step-by-step guide, to opening a successful limited company. But before we dive in, let’s check the legality surrounding it. 

Accountants in Haslemere, Surrey

We are qualified accountants providing personal and professional services for start-ups, established companies and individuals in and around the Halsemere area in Surrey. With the rise in technology, we have embraced the digitisation of accounting using efficient digital accounting tools to offer reliable services to our customers. Our goal remains to get our clients the best accounting and taxation services at the most affordable rates.

Onsite Canteen and Lunch Vouchers - Are They Taxable?

The provision of food and drink to an employee by their employer is a lovely thing to do. Eventually, it promotes teamwork, loyalty, a sense of belonging and even improves productivity. Taking it at face value makes it look like a simple act of kindness. However, unless it is done correctly, it can cause tax and national insurance compliance issues for the employer.
1 2 3 40
Information provided on the site is merely guidance that may change in line with UK law and regulations. Users must not consider this to be financial advice or their sole resource when making any financial decision. Spondoo is a trading name for Accounting SQL Limited, authorised & license accounting firm under the Institute of Financial Accountants.
© Copyright 2023 - Spondoo - All Rights Reserved
How, can we help?
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram