HMRC Payroll Update for July 2022

HMRC has provided a reminder to ensure that employers accurately reflect increased NIC thresholds in the July payroll.

To accommodate the National Insurance threshold change, payroll software, including HMRC’s Basic PAYE Tools, will need to be updated.

It may happen automatically, or you might need to take action.

Payments due to be made from 6 July 2022 must use the correct thresholds.

Employers who run their payroll early should check that their software has been updated before processing and reporting these payments.

HMRC expects software to be updated by 6 July 2022, so any payments processed after that date should not be delayed.

If you are unsure, please get in touch with your software provider.

If you use Basic PAYE Tools, please note that software will be updated to take account of National Insurance threshold increases from 4 July 2022.

So please wait until after 4 July 2022 to run payroll for any payments made on or after 6 July 2022.

Our team is on hand to answer any questions you might have.