Health and Social Care Levy
On 7 September 2021 Boris Johnson, confirmed that in tax year 2022/23, National Insurance (NI) rates for employees, employers and the self-employed will increase by 1.25%.
The initial increase will be collected via National Insurance Contributions (NICs), but in tax year 2023/24 this increase will be changed to be a standalone Health and Social Care Levy. From this point, any individuals who are state pension age and above, and still working, will also be required to pay the levy. When this change happens, NIC rates will return to the levels that currently apply.
Employee payslips will need to be adjusted to accommodate this change, as the levy will need to appear as a new deduction element from tax year 2023/24.
Her majesty’s revenue and customs (HMRC) has published a policy paper relating to the Health and Social Care Levy, which can be located here: http://ow.ly/TGLW30rUvgZ
