Reminder to update payroll software to accurately reflect increased NIC thresholds

To accommodate this change, payroll software, including HMRC’s Basic PAYE Tools, will need to be updated. This may happen automatically, or employers may have to take action.

It is important that payments due to be made on 6 July 2022 or later use the correct thresholds. Employers who run their payroll early should check that their software has been updated before processing and reporting these payments.

The government said it expected that all software would be updated by 6 July 2022, so any payments processed after that date should not need to be delayed. If you are unsure about whether or not your software has been updated, please contact your software provider.

If you use Basic PAYE Tools, please note that this 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.