Are you keeping up with the latest tax changes? If not, don't worry - we've got you covered. In this article, we'll run through all the changes that are coming into effect in 2023/24, so you can be sure you're up to date.
For more info, read the HMRC guidance on rates and thresholds for employers.
Income tax rates and thresholds
Automatic enrolment earnings thresholds
Here are the changes to the annual auto-enrolment thresholds from April 2023.
- The auto-enrolment earnings trigger will remain at £10,000
- The lower earnings limit of qualifying earnings band will remain at £6,240
- The upper earnings limit of qualifying earnings bands will remain at £50,270
For automatic enrolment contributions:
- The minimum contribution for employers is 3%
- The total minimum contribution (employer and employee) is 8%
These changes will affect employees who are enrolled in a workplace pension scheme.
Statutory weekly payments
Here are the new statutory weekly rates, which will take effect in April 2023:
- Statutory Sick Pay (SSP) will increase from £99.35 to £109.40
- Statutory Maternity Pay (SMP) will increase from £156.66 to £172.48
- Statutory Paternity Pay (SPP) will increase from £156.66 to £172.48
Student and postgraduate loans
There are a few changes to student and postgraduate loans for the new year. Here's what you need to know.
- Plan 1 repayment threshold will increase from £20,195 to £22,015
- Plan 2 repayment threshold remains the same at £27,295
- Plan 4 repayment threshold will increase from £25,375 to £27,660
- Student loan repayment rate remains the same 9%
- Postgraduate threshold remains at £21,000
- Postgraduate deduction rate remains at 6%
For more info, read the student and postgraduate loan guidance.
As an employer, you may be eligible for the Employment Allowance, which can help reduce your annual National Insurance liability by up to £5,000. If you think you might qualify, make sure you specify this in your payroll settings and let HMRC know by sending an EPS (Employer Payment Summary).
Check if you’re eligible for Employment Allowance on the HMRC website.
Employer Payment Summary (EPS) and Construction Industry Scheme (CIS) Suffered
If you’re a subcontractor, you can claim back the CIS tax deductions your customers make from their payments to you. All you need to do is send a monthly EPS to HMRC, showing the CIS deductions for the year.
Make sure you include your Unique Taxpayer Reference (UTR) when claiming CIS deductions, otherwise HMRC may reject the EPS submission.