National Insurance Health & Social Care Levy from April 2022
The Government has announced a rise in National Insurance Contributions under the banner of the 'Health & Social Care Levy' due to come into effect in April 2022, for 12 months. Money collected through this levy has been ringfenced to pay for specific social care needs.
Any employee earning under £9564 per annum (£797) won't have to pay the levy.
Current National Insurance rates are 12% on earnings between £9564 and £50,268, then 2% for anything earned above this. The temporary levy will charge an additional 1.25p in every £, so example increases an annual salaries will be:
£20,000 per annum = £1251 to pay, which is an increase of £130
£30,000 per annum = £2451 to pay, which is an increase of £255
£50,000 per annum = £4851 to pay, which is an increase of £505
£80,000 per annum = £5479 to pay, which is an increase of £880
Most UK SMEs use a payroll software of some type, so it is best to check with your payroll software provider that they will be implementing the changes automatically for April 2022.
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