1. As the new Payroll year started in April 2022 we have been waiting for information on the next step in the Making Tax Digital (MTD) journey. From April 2024, MTD for Income Tax, will apply to relevant persons (unincorporated businesses and landlords) with business and/or property income over £10,000.


2. The Income Tax (Digital Requirements) Regulations 2021 (SI 2021 No 1076) set out the requirements that relevant persons must comply with under MTD for Income Tax. These include the use of MTD-compatible software to keep and preserve their business records (business income and expenses) digitally, send quarterly updates of their records to HMRC, and submit an end of period statement to HMRC.

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The UK Government announced an increase in National Insurance thresholds affecting the 2022 to 2023 tax year during the Spring Statement 2022.

I want to take the opportunity to remind our customers of the threshold changes taking effect from 6 July 2022, meaning employees will pay National Insurance contributions on less of their income.
The primary threshold from 6 July 2022 to 5 April 2023 will be £242 per week and £1,048 per month, equivalent to £12,570 per year (increased from £9,880 per year). See the guidance Rates and thresholds for employers 2022 to 2023, ‘Class 1 National Insurance thresholds’ for further information.

The National Insurance lower profits limit for self-employed people has also increased in line with the changes for employees. The annual lower profits limit is now set to £11,908 for 2022 to 2023. This is equivalent to 13 weeks of the threshold at £9,880 and 39 weeks at £12,570, mirroring the position for employees. Self-employed people are also no longer required to pay Class 2 National Insurance contributions on profits between the Small Profits threshold (£6,725) and Lower Profits limit (£11,908), but they are still able to build National Insurance credits.

Please contact us about these changes – we are here to help!