Careers Insights Client Zone

  • Our Services
  • How We Help
  • Meet The Team
  • Careers
  • Insights
  • Contact Us
  • Client Zone
01752 697397 Contact Us

NIC increase alert

2 mins to read 05/10/2021

From April 2022, in line with announcements made last month, National Insurance Class 1 contributions (that will affect employed persons and their employers) and Class 4 contributions (that will affect the self-employed), are increasing by 1.25%.

These increases will affect all employed and self-employed workers that presently pay National Insurance.

This increase will only apply to NIC rates for one year. From April 2023, the 1.25% increase will be removed from Class 1 and Class 4 NIC rates and a new tax is being created to be known as the Health and Social Care Levy (HSCL).

The HSCL will appear as a separate item on payslips and tax statements for the self-employed. The Levy is the closest the UK will have to a hypothecated tax – a tax levied and applied to a specific funding objective, i.e., funds for the NHS and social care budgets.

Whilst payroll software providers will already be making changes to their code to accommodate this new tax, it will be interesting to see if HMRC can adapt their systems in time for the April 2023 launch date.

Many smaller company employers, those that can claim the £4,000 employment allowance, will likely escape payment of the 1.25% increase in employers’ Class 1 contributions. However, the increase will also apply to Class 1A NIC employer contributions and these are not covered by the employment allowance.

Note: Class 1A NIC is payable via the P11d system on the value of taxable benefits provided by employers and is levied at the end of each tax year.

Streamlining Payment Runs: Say Goodbye to Manual Hassles

3 mins to read 27/11/2023

Autumn Statement 2023

3 mins to read 23/11/2023

Reporting early payment of wages before Christmas

2 mins to read 20/11/2023

Let's grow your business together

Get in touch
office@bromheadco.co.uk 01752 697397

Harscombe House 1 Darklake View Estover Plymouth PL6 7TL

Information

How We Help Our Services Meet The Team Terms and Conditions Privacy Policy Legal Documents

Get the latest news sent directly to your inbox

Linkedin Twitter

Bromhead is the trading name of Bromhead Ltd | Registered office: Harscombe House, 1 Darklake View, Estover, Plymouth, PL6 7TL Company number: 7167909 © 2023. All rights reserved. Website built by Elixel