CIPHR’s payroll bureau: celebrating year-end success

Tax year end is crunch time for payroll professionals. Here’s how CIPHR’s bureau team supported customers this April

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April is always a busy time of year for payroll professionals – and it was no exception for CIPHR’s dedicated payroll bureau team, who ensure that our customers’ payrolls are processed accurately and on time each month. Read on to learn how they supported CIPHR Payroll customers – including seven new clients who have just joined the CIPHR family – as well as a quick summary of the legislative changes that have taken effect for the 2022/23 tax year.

Our achievements this April

This tax year end, the CIPHR payroll bureau processed over 50,000 payrolls and recorded a monthly Bacs volume of nearly £180 million. Plus, all year-end submissions were made accurately, and on time – an achievement that’s not to be underestimated. We’ve also helped customers comply with new tax legislation, such as updating all payslips to show the 1.25% uplift for the healthcare levy.

Seven new customers’ payrolls went live in April 2022; we’re delighted to welcome Kreston Reeves LLP, Brabners LLP, Westminster Drug Project, Newbury Building Society, Mazda Motors UK, Visit Britain , and IMServ Europe to the CIPHR bureau family.

Recap of changes for the 2022/23 tax year

PAYE and Scottish PAYE

The chancellor announced in his spring statement on 23 March 2022 that, from July 2022, the point at which employees start paying will also be set to £12,570. These rates apply to England, Northern Ireland, and Wales.

Scottish income tax is determined by the residency. If your main place of residence is in Scotland, you are a Scottish taxpayer. For Scottish residents, personal allowances are the same as the rest of the UK – except for those earning over £125,140, who do not get a personal allowance.

Pensions and pension allowances

In April 2022, the state pension rose 3.1%. This affects you whether you’re eligible for the new flat-rate state pension, which was introduced in April 2016, or the older basic state pension.

This tax year, those qualifying for a full new state pension will receive £185.15 a week (up from £179.60). And those who reached state pension age before April 2016, who are on the older basic state pension, will now receive £141.85 – up from £137.60. The standard annual allowance will remain at £40,000 for the 2022/23 tax year.

Health and social care levy

The health and social care levy came into action this April. Its goal is to raise almost £36 billion over the next three years for health and social care services.

While it may be called a ‘levy’, it is just an additional tax on employers and employees, which will be collected via national insurance contributions in 2022/23, and as a separate deduction on payslips from April 2023.​ This means that, on 6 April 2022, all rates of national insurance for both employees and employers increased by 1.25 percentage points.