National Insurance Increases
The government announced its plan in September 2021 to better fund the NHS and social care sector. This includes a new additional tax which will be collected From April 2023, called the Health and Social Care Levy.
Unlike National Insurance (NI) this new additional levy will also be paid by state pensioners who are still working.
The Health and Social Care Levy is expected to raise £12bn a year and this will initially be spent on easing NHS pressure but then a proportion will be moved into the social care system.
However, before this is introduced there will be a 1.25% increase in from 6 April 22 for one year for employees, employers and self-employed people. This will then be removed in April 23 and the Health and Social Care Levy introduced.
The increase applies to:
- Employees who pay NI on their wages
- Employers who pay NI contributions for staff
- Self-employed people who pay NI on their profits.
If we undertake your payroll you can relax as this will all be taken care of by us.
