Qualifying earnings are all an employee’s earnings between a lower and upper limit set by the government and reviewed each year.
For the 2022-2023 tax year:
- the lower limit is £6,240
- the upper limit is £50,270
- the maximum qualifying earnings is £44,030 (£50,270-£6,240)
Qualifying earnings thresholds
|Pay periods||Lower level||Upper level|
2022/2023 earnings: £20,000 salary + £5,000 bonus
Qualifying earnings: £25,000-£6,240 = £18,760.