Payroll matters
Companies can currently claim super-deduction allowances set at 130% of the cost of new plant and machinery or 50% of the purchase cost of certain fixtures and fittings for buildings. These super-deductions will expire on 31 March 2023.
The Chancellor has decided to freeze the Class 1 NIC thresholds and rates for 2023-24 at the amounts that have applied since 6 November 2022 - the date of the latest rate changes.
The health and social care levy which was due to take effect from 6 April 2023 will not be introduced.
The rates of statutory sick pay; maternity; paternity; and adoption pay have not yet been announced. As state benefits and pensions have been uprated by 10.1% in general it is reasonable to assume that statutory payments will be similarly uprated.
The national minimum wage rates are increased in line with the rate of inflation for pay periods starting on and after 1 April 2023. The new hourly rates will be:
Pay periods from | Living wage: age 23 | Adult: age 21-22 | Youth: age 18 -20 | Under 18 | Apprentice | Accommodation daily off-set |
|---|---|---|---|---|---|---|
| £/hr | £/hr | £/hr | £/hr | £/hr | £/hr |
| 1 April 2023 | 10.42 | 10.18 | 7.49 | 5.28 | 5.28 | 9.10 |
| 1 April 2022 | 9.50 | 9.18 | 6.83 | 4.81 | 4.81 | 8.70 |
From 2024 the living wage age threshold of 23 will be reduced to 21 meaning that there will be only one adult rate.
