The Payroll Library for 2022/23

The 2022/23 tax year is here.?

So, to ensure the consistent operation of PAYE, I have put together a list of guidance from the i-Realise Website, the essential PAYE booklets, tables and leaflets and some links to HMRC’s internal manuals.

I have highlighted with ** the ones that are not available at the time of writing, though the link is correct for when they are published:

• The Basic Earnings Assessment
• ‘What Tax Code to Use’
• Rates and Allowances 2022/23
• The Spring Statement 2022

• P9X (Tax codes to use from 06 April 2022)
• The Pay Adjustment Tables (Table A)
• The Taxable Pay Tables (2022/23)
• ‘Income Tax rates and allowances for current and past years’
• Starter Checklist (online and printable)
• Expat Starter Checklist ((online and printable)
• PAYE Tax calculator

There are also some in-depth manuals that are worth bookmarking:

• Employment Income Manual
• PAYE Manual
• Scottish Taxpayer Manual
• Welsh Taxpayer Manual

• National Insurance rates and categories (Gov.UK guidance)
• Rates and allowances: National Insurance contributions
• Share fisherman: Income Tax and National Insurance contributions
• Voluntary National Insurance: re Class 3 ‘voluntary’ Contributions
• National Insurance Contributions calculator
• Director’s National Insurance Contributions calculator

These are for paydays that fall between 06 April and 05 July 2022 as the National Insurance Contributions (Increase of Thresholds) Act 2022 changes the Primary Threshold from 06 July 2022.?

As well as for calculating National Insurance Contributions (NICS) via the Table Method, they will be used by employers when performing manual calculations using the ‘earnings limits and NICs rates’ detailed on page 7 of the CA38. ? They are interesting for the wrong reasons:

1. They state that the value of the Employment Allowance is ￡4,000 when it is ￡5,000
2. I cannot see that they mention about employers using the political payslip message
3. The CA38 says that Freeport Upper Secondary Threshold (FUST) is only applicable ‘for employers of employees who meet the Freeport qualifying conditions’ and, therefore, are allocated the NICs letter F, I, S or L.?Yet, the software developers’ guidance EB5 requires payroll software to consider the FUST in all NICs manual calculations, regardless of the NI category letter
4. The Spring Statement said that the Primary Threshold would not be increased until July, as this is ‘the earliest date that will allow all payroll software developers and employers to update their systems and implement changes’.?Whilst this may be correct for some software developers, we have to consider that July is the probably the earliest date that HMRC could get information correct!

• CA38 (table letters A, F, H, J, L, M, V and Z)
• CA40 (Employee only NICs) **
• CA41 (Table letters B, C I and S)
• CA42 (Foreign-going mariners and deep-sea fishermen)
• CA44 (Company directors)
• CWG2 (The Further guide to PAYE and NICs) 09 February 2022 is the latest 2022/23 version

Please ensure you keep an eye out for changes and updates to the CWG2.? There is also the National Insurance Manual for in-depth reading about all things NICs.?

• SSP (Employer guide to pay)
• SSP linking tables
• Statutory Sick Pay: employee fitness to work

There is also the ‘Calculate your employee’s SSP’ tool and ‘Work out your employee’s Statutory Sick Pay’.

• SMP and Leave (Employer guide)
• Table of dates for employee entitlement
• Manually calculate Statutory Maternity Pay

• SAP and Leave (Employer guide)
• Table of dates for employee entitlement
• Guidance ‘Statutory Adoption Pay: employee circumstances that affect payment’
• Guidance ‘Statutory Adoption Pay: manually calculate your employee's payments’

• SPP and Leave (Employer guide)
• SPP (birth – table of dates for employee entitlement)
• SPP (adoption – table of dates for employee entitlement)

• ShPP and Leave (Employer guide)

The rules regarding entitlement to ShPP (in terms of service) mirror those for SMP – i.e. the employee must have been employed for 26 weeks up to and into the Qualifying Week or Matching Week for adoption.? Therefore, the above tables can be adapted.

• Guidance ‘Employee circumstances that affect payment of Statutory Parental Bereavement Pay’
• Manually calculate your employee’s Statutory Parental Bereavement Pay
• Tables with relevant weeks and start dates
• Online claim form (for employee completion)

Note that HMRC’s use of the word ‘guidance’ can be translated as ‘advice’.? My starting place for in-depth guidance is to consult the Statutory Payments Manual though, perhaps, this is an acquired taste!

There is also a Maternity, adoption and paternity calculator (for calculating SMP, SAP and SPP). ?

• SL3 (Student Loan Deduction Tables) **
• Guidance for employers
• Starter Checklist (online and printable)
• Expat Starter Checklist ((online and printable)

The E17 ‘Collection of Student Loans’ booklet was discontinued from 06 April 2016. ?Previous versions of the booklet are still available on the Gov.UK Website but are increasing not valid, as the thresholds are incorrect.

The Collection of Student Loans Manual is a good read though!

Note that if a car has a CO2 emission of between 1 and 50g/km, the car’s zero emission mileage value must be reported via the updated P46(Car).

Remember that 2021/22 tax year is not finished until the P11Ds have gone in. ?The below will be useful in finishing the old tax year and working in the new:

• P11D (pdf)
• Company car tax appropriate percentages ready reckoner
• Sending car data to HMRC: payrolling car benefit and car fuel benefit
• Accommodation Working Sheet 1
• Cars and Car Fuel Working Sheet 2
• Cars and Car Fuel (OpRA) Working Sheet 2b?
• Vans Working Sheet 3
• Loans Working Sheet 4
• HMRC Official Rates: beneficial loan arrangements (2% for 2021/22)
• Relocation Expenses Working Sheet 5
• Mileage Working Sheet 6

• P11D(b)
• ‘No return of Class 1A National Insurance contributions’ (Gov.UK)
• CWG5 (Class 1A NICs on benefits in kind, termination payments and sporting testimonials)
• Class 1A NIC reference checker (for use when paying Class 1A NICs)
• Pay employers' Class 1A National Insurance

• PSA1 (different ones for Scottish Taxpayers, Welsh Taxpayers and rUK Taxpayers)

• ‘How to complete forms P11D and P11D(b)’
• 480 (Expenses and Benefits starting point collection of documents)
• 490 (Employee travel starting point collection of documents)
• ‘Travel — mileage and fuel rates and allowances’

Maybe not for use by employers but good to have this information anyway:

• Pension schemes rates and allowances
• Guidance ‘Pension schemes: value your pension for lifetime allowance protection’
• Guidance ‘Protect your pension lifetime allowance’
• Guidance ‘Work out your reduced (tapered) annual allowance’
• Guidance ‘Check if you’ve gone above the money purchase annual allowance’

The ‘Pension scheme rates’ advice is an interesting document as it shows historical values too.

There is also the in-depth Pensions Tax Manual.