As we start a new tax year in 2022/23 we are often faced with new tax and personal allowance rates which might mean that we have more take home pay. However, this year, there are not many changes to tax rates and no change to the personal allowance which remains at £12,570.

You can check out all of the personal taxation rates and allowances for 2022/23 here including the personal allowance, capital gains tax, income tax rates, inheritance tax rates etc.

The one main change for this year is the increase in National Insurance to account for the health and social care levy.

These are the details from the government website:

What the changes are and when they will affect you

For tax year 6 April 2022 to 5 April 2023

Employer Class 1, employee Class 1, Class 1A, Class 1B and Class 4 National Insurance contributions will increase, for one year, by 1.25 percentage points.

From 6 April 2023

The National Insurance contribution rates will go back down to 2021 to 2022 levels, and the levy will become a separate new tax of 1.25%.

Obviously with the freezing of personal tax rates and the increase in National Insurance, many people are facing a reduction in take home pay together with an increase in bills. It is obviously going to be a tough time for a lot of people.

In 2024 there is the prospect of a drop in the basic rate of tax from 20p to 19p which will hopefully balance things out by a small amount for some people, but we still have a couple of years to wait for this.