15 Mar 2022
As we emerge from the past two years of extraordinary financial support from the Government, UK taxpayers are now being asked to contribute towards repaying the country's debt.
We would like to remind you that the increases in National Insurance Contributions (NIC) of 1.25% - first announced last year - will take effect from April 2022. These increases will be ring-fenced to provide funding for the NHS, health and social care.
The increases will apply to:
All existing NICs reliefs to support employers will continue to apply. In addition to the employment allowance, this includes the following:
From April 2023, these 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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Completing P11D forms to report benefits in kind
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From 6 April 2022 the dividend tax rate increased by 1.25%