2022/23 changes for employers

Employers are consistently called to adapt to changes in the tax rules and the new tax year (2022/23) is no different in introducing more. We summarise the most important that take effect from April 2022 below.

Health & Social Care Levy

The Health & Social Care levy is effectively introduced from 6 April 2022, initially through an increase of 1.25% in national insurance rates, then being separated out from April 2023 when national insurance rates revert to existing rates and the levy becomes chargeable on the earnings of those over State Pension age. 

COVID-19 provisions

Easements which have been in place during 2020/21 and 2021/22 to accommodate the increased working from home during the Covid19 pandemic are set to end on 5 April 2022.  Consequently, employers/employees may need to reassess their approach. The measures affected are:

  • The ability for an employee who is required to work from home (even for part of their working time) to claim tax relief equal to the £6 per week homeworking allowance whilst not meeting the strict definition of home as a workplace.
  • The temporary tax and NIC exemption for the costs of office equipment purchased by the employee for use at home and reimbursed by the employer.
  • The suspension of the requirement for those who have benefitted under the Cycle to Work scheme from before 21 December 2020 to undertake qualifying journeys.

Minimum wage rates

All rates will increase from 1 April as below the percentage increase for each band varying between 4.1% and 11.9%.

Hourly rate 

Apprentices aged under 19 and/or in first year 

Under 18


21 -22

National Living wage 23 and over

Accommodation offset

From 1 April 2021







From 1 April 2022







Minimum wage: salaried workers

Note also that whilst the conditions for being classed as a salaried worker were amended from 6 April 2020, for those workers who did not meet the conditions before that date, but did so because of them, these amendments apply from 6 April 2022.

National Insurance

Employee and employer Class 1 contributions rates and thresholds (£ per week):


Tax year 2021 to 2022

Tax year 2022 to 2023

Weekly Lower Earnings Limit (LEL)



Weekly Primary Threshold (PT)



Weekly Secondary Threshold (ST)



Upper Earnings Limit (UEL)



Upper Secondary Threshold (UST) for under 21s



Apprentice Upper Secondary Threshold (AUST) for under 25s



Veterans’ Upper Secondary Threshold



Freeport Upper Secondary Threshold



Employment Allowance (per employer)

£4,000 per year

£4,000 per year

Company cars

Aside from wholly electric cars with zero CO2 emissions where the benefit in kind rate increases from 1% to 2% of list price on 6 April 2022, the taxable benefit in kind figures for new company cars remain as in the current tax year (2021/22) until 2024/25 inclusive.

The company car fuel multiplier increases from £24,600 to £25,300.

Company Vans

Van benefit increases from £3500 to £3600. The van fuel benefit charge increases from £669 to £688.

New requirement for Large Businesses

Large businesses will be required to notify HM Revenue and Customs (HMRC) where they have adopted an uncertain tax treatment from 1 April 2022; a measure which extends to PAYE – read more in our update.

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