HMRC has just recently announced an uncommonly large number of payroll-related changes just this last month, so employers are being urged to make sure they’re prepared for these changes by this April. As these announcements have been left until last minute, there is a rush and urgency to make sure employers are aware of these changes.

Here’s what you need to know:

National Minimum Wage

Although this is already widely known, a reminder that both the National Minimum Wage and National Living Wage are increasing as of 1st April 2022, you can view the rates in our previous article here.

National Insurance Contributions (NIC)

It was announced in September 2021 that a new Health and Social Care Levy of 1.25% will be introduced to support funding investments in the NHS, health, and social care. This new levy will be introduced from April 2022, meaning NIC for the self-employed, working age employees and employers will increase by 1.25%.

Automatic Enrolment
  • The automatic enrolment (AE) qualifying earnings band (QEB) lower limit will diverge in 2022/23 from the National Insurance Contributions (NIC) lower earnings limit, which is set to increase to £6,396
  • The NIC upper earnings limit (UEL) will be frozen at £50,270 in 2022/23, so the AE upper limit of the QEB and NIC UEL will continue to align
  • The automatic enrolment earnings trigger will remain at £10,000
  • The lower limit of the qualifying earnings band will remain at £6,240
  • The upper limit of the qualifying earnings band will remain at £50,270.
Student Loans

The student and postgraduate loans thresholds and rates will be:

  • Plan 1 ― £20,195
  • Plan 2 ― £27,295.
  • Plan 4 ― £25,375
  • Postgraduate loan ― £21,000

If any of these changes are concerning you and you wish to seek help and advice, please get in touch with us at