Version 22.30

Introduction

These release notes provide information on new features, enhancements and fixes developed since the last release, listed by change reason:

  • Product enhancements

  • Bug Fixes

NI Primary Thresholds

From 6 July 2022, new primary thresholds will be introduced for National Insurance, which means during the 2022/2023 tax year, there will be two sets of NI parameters. The first set applies to pay periods from 6 April 2022 to 5 July 2022, and the second for pay periods from 6 July 2022 to 5 April 2023.

The two sets of National Insurance parameters only relate to the 2022/2023 tax year.

Director NI Thresholds

The annual Primary Threshold for Directors is £11,908 and differs from the standard threshold of £12,570. This threshold is effective for the duration of the 2022/2023 tax year. Directors using the annual method will use the new pro-rata annual Primary Threshold of £11,908 for pay periods with a pay date from 6 July 2022 to 5 April 2023.

Directors using the alternative method will use the new period Primary Threshold for pay periods with a pay date from 6 July 2022 onwards. The Primary Threshold of £9,880 will apply for pay periods with a pay date from 6 April 2022 to 5 July 2022 for Directors, as permitted by HMRC.

Examples

Director – Annual Method

The table below shows annual Director NI calculations for the 2022/2023 tax year.

Month Pay Date Gross EE’s Period EE’s YTD ER’s Period ER’s YTD
1 25/04/2022 10000.00 15.90 15.90 135.45 135.45
2 25/05/2022 10000.00 1325.00 1340.90 1505.00 1640.45
3 25/06/2022 10000.00 1325.00 2665.90 1505.00 3145.45
4 25/07/2022 10000.00 1056.29 3722.19 1505.00 4650.45
5 25/08/2022 10000.00 1325.00 5047.19 1505.00 6155.45

The reduced employee NI in month 4 is because the primary threshold of £11,908 is applied.

Print Tax NI Pension Parameters

The Print Tax NI Pension Parameters report now includes two sets of NI thresholds for the 2022/2023 tax year, as well as:

  • A new title below Tax Year 2022/2023 National Insurance Rates labelled Thresholds in use 06 April 2022 to 05 July 2022

  • A new title and table containing the new threshold labelled, Thresholds in use for 06 July 2022 to 05 April 2023

  • A new Director’s Annual Threshold £11,908 bullet point