Prepare your payroll for the National Insurance increases from July 2022

News article

Payroll software may need to be updated to reflect the increased National Insurance thresholds that come into effect from 6 July 2022

From 6 July 2022 the National Insurance Contributions (NICs) will increase. The primary threshold from 6 July 2022 to 5 April 2023 will rise to:

  • £242 per week
  • £1,048 per month
  • £12,570 per year

See Class 1 National Insurance thresholds for 2022 to 2023.

Payroll software

To accommodate this change, payroll software, including HM Revenue & Customs (HMRC's) Basic PAYE Tools, will need to be updated. This may happen automatically, or you might need to take action.

It is important that payments due to be made on 6 July 2022 or later use the correct thresholds. Employers who run their payroll early should check that their software has been updated before processing and reporting these payments.

HMRC's Basic PAYE Tools

HMRC expect that all software will be updated by 6 July 2022, so any payments processed after that date should not need to be delayed. If you are unsure about whether or not your software has been updated, please contact your software provider.

If you use Basic PAYE Tools, please note that this software will be updated to take account of National Insurance threshold increases from 4 July 2022. HMRC advise you to wait until after 4 July 2022 to run payroll for any payments made on or after 6 July 2022.

First published 6 June 2022