So you heard the government announce the change to National Insurance contributions (NICs) from April 2022, but what does this actually mean to you?
NICs are going to increase by 1.25% for one year only, this applies to employees, employers & self-employed (Classes 1, 1A, 1B & 4).
From April 2023, a new Health and Social Care Levy will be introduced, applied to employees, employers & self employed again, this time also extended to those over State Pension age when they are in work. At this point NICs will reduce back to their current levels. Essentially, this means the deduction will remain at the same level from April 2022 with just the wording changing in April 2023.
So, someone who’s employed earning £24,100 (the typical basic rate taxpayer’s income) per year in 2022/23 would contribute an extra £180 in the year, while a higher rate taxpayer earning £67,100 (the typical higher rate taxpayer’s income) per year in 2022/23 would pay an extra £715 per year.
Still feel concerned about what your payroll figures will be for 2022/2023? Get in touch and we’ll help calculate what they’ll be so you know exactly what to expect.