A couple of weeks ago the government announced tax changes which will be spent on the NHS and social care across the UK.
From 6.4.2022 to 5.4.2023 National Insurance Contributions (NICs) will increase by 1.25%.
This NIC increase will affect:
The increase in national insurance is applicable to:
There will also be an equivalent increase in dividend tax rates from April 2022.
From April 2023, a new ringfenced Health and Social Care Levy of 1.25% will be introduced. This will apply to those who pay:
When the new Levy comes into effect, National Insurance rates will revert back to current levels.
Your payroll software should be automatically updated to include the changes which affect your payroll from April 2022, so please ensure you are running the latest version of the software (where applicable).
If you would like any further guidance around the NIC increase or have any questions on the above, please contact us.