What’s new for 2022 in payroll

The end of the tax year is always a busy time for everyone in particular for those operating PAYE for clients and employees. But with the new tax year having just arrived let’s turn our attention to what the changes are for the new financial year.

PAYE

First employers should ensure that any payroll software update has been applied to their payroll system. The software should carry forward the tax codes from 2021-22 to 2022-23 for current employees and amend tax codes held on the payroll that are on a non-cumulative basis – week 1/month 1 – to cumulative.

At this point traditionally any tax code uplifts should be applied as set out on form P9X (2022). However due to the freezing of the personal allowance of £12 570 (subject to an income of up to £100 000) for 2022-23 no tax code...