Payroll Year End 2022 Checklist – Get Ready

In this article we provide a Payroll Year End 2022 checklist. We appreciate that finishing one tax year and starting the next can feel like you’re entering a bit of a race. So, we hope this article will help you get ready and heading for the winning line more easily.

Finishing one tax year and starting the next.

Payroll Year End 2022 Checklist – Get Ready, Set, Go!

As an employer running a payroll, you will need to report to HMRC on the previous tax year which ends on 5 April 2022. Additionally, you give your employees a P60, then prepare for the new tax year which starts on 6 April 2022.

When you send your final FPS (Full payment Submission) on or before your employees’ final payday of the tax year then you should put ‘Yes’ in the ‘Final submission for year’ field*, if available in your payroll software.

  • If this field* is not available then you should send an EPS (Employer Payment Summary) instead.
  • The final submission for the year should be sent no later than 19 April 2022
  • All employees should be issued with their P60’s no later than 31 May 2022.

There is no change to the standard tax code for the new tax year, which will remain as:

  • 1257L until 5 April 2026.
  • This gives a tax free pay of £12570 per year, £1048 per month and £242 per week.

The new National Minimum Wage rates for the 22-23 tax year

are as follows:-

  • Aged 23 and over £9.50
  • Ages 21-22 £9.18
  • Aged 18-20 £6.83
  • Ages under 18 or in first year of apprenticeship £4.81

National Insurance

The rates for national insurance have increased by 1.25% across the board with effect from 6 April 2022, to include the new Health and Social Care Levy.

  • This will be shown separately on payslips from 6 April 2023.

Lower Earnings Limit

This will increase from £120 to £123 on 6 April 2022. 

  • If you earn over £120 per week then you will accrue National insurance credits whether you pay national insurance or not.
  • This will entitle you to SSP (Statutory Sick Pay) and SMP/SPP (Statutory Maternity/Paternity Pay).

Primary Threshold

The threshold where the employee starts to pay national insurance contributions is going up:

  • from £184 per week / £797 per month
  • to £190 per week / £823 per month.

Following the Spring Statement the Primary Threshold will align with the personal allowance, of £12,570, from 6 July 2022. (Month 4)

Secondary Threshold

The threshold where the employer starts to pay national insurance contributions is going up:

  • from £170 per week / £737 per month
  • to £175 per week / £758 per month.

SSP and SMP/SPP Rates

A full week’s sick pay is going up:

  • from £96.35
  • to £99.35

and Parental pay is going up:

  • from £151.97
  • to £156.66 (or 90% of the employee’s average weekly earnings, whichever is the lower).

Payroll Year End 2022 and Ongoing Payroll Support

If you are a payroll client of Shaw Austin then we will take care of all of this for you.

For more information on our services give us a call on 01244 400244.

 


Shaw Austin are a firm of Chartered Accountants based in Chester supporting independent business throughout the UK. We take the headache out of business accounting and taxation by providing our clients with a personal service.


This article includes tax rates and allowances correct on date of publishing – tax rates and allowances can change from year to year. This is a general article to assist readers. Professional advice should always be taken in respect of your personal circumstances.

Published March 2022

Get Ready - Payroll Year End 2022 Checklist