Wage and Salary Changes to be aware of from April 2023

The government announced in their Autumn statement that from April 2023 there will be some important changes that will affect wages and salaries.

Income Tax changes

The additional rate threshold for the 45% tax rate will move from £150,000 to £125,140. All other income tax thresholds will remain at the current rate until April 2028.

National Living Wage and National Minimum Wage

The National Living Wage will increase to £10.42 from the current £9.50 per hour from April 2023 for employees aged 23 and over.

The National Minimum Wage will also increase, as follows:

  • 21-22 year olds – £10.19 an hour from £9.18
  • 18-20 year olds – £7.49 an hour from £6.83
  • 16-17 year olds and apprentices – £5.28 an hour from £4.81

National Insurance

The National Insurance contributions thresholds and class 1 rates will stay at the current rates until 2028.

Class 2 NIC rates for self-employed will be increased to £3.34 and class 3 to £17.45 from April 2023.

Employers National Insurance contributions secondary threshold will remain at the current rate of £9,100 a year until 2028. This will mean that employment costs will rise for eligible employers with employer NICs over £5000 a year, as salaries and wages increase between April 2023 and April 2028.

If you are a business owner doing your own payroll using Sage50 Payroll or Sage 50 Accounts and would benefit from some support, download one of our free guides.

Or why not join one of our Facebook support groups?

 

If you would like any further support with your Sage 50 payroll software, then please get in touch.  

10/01/2023

“Any advice relating to accounts or tax should be sought from your tax accountant. Sage Accounts Solutions Limited will not be held responsible for any loss or damage caused as a result of the information contained herein.”

Share this...

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.