Scottish tax rates
​NIC thresholds
​Student loan thresholds
​National Minimum Wage
​Statutory pay rates
​NIC relief for veterans
​Health and social cary levy
​“1.25% uplift in NICs funds NHS, health and social care.”
​

The new tax year starts on 6th April 2022, and, as with all tax years, we need to prepare for the changes that impact payroll and HR.

This guide highlights the key confirmed and proposed* changes employers should be aware of.

From 6th April 2022, Veteran NIC relief will be claimed directly via the payroll using NIC category V.

NIC relief for veterans can be claimed for a period of 12 months from the veteran’s first civilian employment.

The first employment may not have been within your organisation so to ensure you do not over-claim relief you should keep a record of each qualifying employee’s first employment start date so you know when to change this employee’s category from V to their new relevant NIC category.

For claims for 6th April 2021 to 5th April 2022 you must contact the HMRC directly. You can find more information on this here.

From April 2022, employee and employer NIC will increase by 1.25% meaning that employees paying 12% NIC now will pay 13.25% and employer’s paying 13.8% will pay 15.05%.

The updated rates including the health and social care levy can be found here.

For the first year, employers will show this as part of employee and employer NIC contributions on the employee payslip.

From April 2023 this should be shown as a separate deduction.

PayFit users will see this separate deduction from April 2022 to give employees transparency on the additional deduction.

Employers are encouraged to add a payslip message to inform employees of the changes.

You can import payslip messages for employees in the PayFit app.