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National Insurance Increase/Health and Social Care Levy

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National Insurance Increase/Health and Social Care Levy

With effect from 6th April 2022 the government has introduced a new two-part plan to get the NHS and social care system back on track – post pandemic.

Employees, employers and the self-employed who are liable to pay national insurance (NI) contributions and individuals that would be liable to pay NI were it not for pension age restrictions will be affected. Individuals who only pay class 2 and class 3 contributions will not be affected.

Phase 1

From April 2022 – April 2023 there will be a temporary 1.25% increase to both the main and additional rates of class 1, class 1A, class 1B and class 4 NI and all revenue raised will go directly to support the NHS and equivalent bodies across the UK.

Phase 2

From April 2023 onwards the National Insurance contribution rates will then return to the 21/22 tax year levels but will be replaced with a new 1.25% health and social care levy which will be ringfenced to support UK health and social care bodies.

Individuals above State Pension age that are still working will not be affected by the temporary increase to National Insurance contributions (Phase 1) year but will be liable to pay the levy from April 2023.

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