New tax year – new investment opportunities and new payroll changes

A new tax year began on 6 April 2022, which means that for savers, you can start afresh by investing more money into your ISAs to take advantage of their tax-free status.

  • The maximum amount that can be paid into ISAs is £20,000 per tax year
  • The limit on Junior ISAs or Child Trust Funds is currently £9,000
  • The Lifetime ISA, (LISA) is available for anyone between the ages of 18 and 40 and enables you to save up to £4,000 each year. The Government adds a 25 per cent bonus for each month that you have saved.

If you are an employer, you need to be aware that a number of payroll changes came into effect at the start of April. The National Living Wage, for workers over 25 and the National Minimum Wage – for those aged 24 and under have increased.

The NLW has risen from £8.91 an hour to £9.50 an hour, the NMW or 21 and 22-year-olds has increased from £8.36 to £9.18, for those aged 18 to 20 it rises from £6.56 to £6.83, while the under 18s it goes up £4.62 to £4.81. The rate for apprentices rises from £4.30 to £4.81.

Lastly, both business owners and self-employed workers will need to submit their annual P60 documents for the 2021/22 tax year by the 31 May. If you haven’t started working on these yet, now might be a good time to do so, to save the last minute rush.

For more information and guidance on both personal and business tax planning, support with MTD along with our range of payroll and auto enrolment services, please contact us.