Increase in the UK National Insurance from April 2022. AdobeStock
The increase in National Insurance Contributions (NIC) of 1.25% which was first announced last year will take effect from April 2022.
Increase in the UK National Insurance from April 2022. AdobeStock
The increases in the National Insurance will be ring-fenced to provide funding for the NHS, health and social care.
Employers should ensure that they are prepared for the increase as these changes will increase wage costs from April 2022.
All existing NICs reliefs to support employers will continue to apply. In addition to the employment allowance, this includes the following:
From April 2023, the National Insurance increases will be incorporated into a new Levy. The Levy will be administered by HMRC and collected by the current channels for NICs – Pay As You Earn and Income Tax Self-Assessment.
Please note, at the time this article was written there has been significant political pressure in parliament to cancel this increase. We will advise if this challenge results in the withdrawal of the 1.25% increase.
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