The UK government has announced that NI payments are set to rise by 1.25% from April 2022 as a part pledge to fund health and social reforms. The UK-wide tax increase is designed to raise 36bn for NHS services over the next 3 years, in what is being called the “biggest catch up in NHS history”.
The 1.25% increase will switch to a separate tax from 2023, which will be called the “Health and Social Care Levy”, which will be calculated in the same way as NI but will appear on payslips as a different payment.
Who will the increase apply to?
The increase will apply to:
- Class 1 (paid by employees)
- Class 4 (paid by self-employed)
- secondary Class 1, 1A and 1B (paid by employers)
The NI increase in 2022 will not apply if you are over the State Pension age but the Health and Social Care Levy will also be paid by state pensioners who are still working.
Breakdown of the increase
The UK government has announced that NI payments are set to rise by 1.25% from April 2022 as a part pledge to fund health and social reforms. The UK-wide tax increase is designed to raise 36bn for NHS services over the next 3 years, in what is being called the “biggest catch up in NHS history”.
The 1.25% increase will switch to a separate tax from 2023, which will be called the “Health and Social Care Levy”, which will be calculated in the same way as NI but will appear on payslips as a different payment.
Who will the increase apply to?
The increase will apply to:
- Class 1 (paid by employees)
- Class 4 (paid by self-employed)
- secondary Class 1, 1A and 1B (paid by employers)
The NI increase in 2022 will not apply if you are over the State Pension age but the Health and Social Care Levy will also be paid by state pensioners who are still working.
Breakdown of the increase
