What are the changes?

On 22 September 2022, Kwasi Kwarteng announced the following changes:

• National Insurance rates to reduce by 1.25% effective from 6 November 2022. This is a reversal of the NI increase that took effect from 6 April 2022.
• The Health and Social Care Levy, which was planned to take effect from 6 April 2023, has been cancelled.
• Find out in our helpful guide what will happen to Directors National Insurance >

The Chancellor, Jeremy Hunt confirmed on 17 October that these changes remain in place.

TIP: Why not watch a recorded webinar for more information on the changes. Watch now >

Software update

To stay compliant, you should ensure your version number is v28.05 or above before you process a pay date of 6 November or after.

If your version is v28.04 or below, our easy to follow support guide takes you through the steps to download and install your NI changes software update.

Download and install your Sage 50 Payroll National Insurance update >

Payslip comments

When the April 2022 NI increase of 1.25% took effect, HMRC issued guidance that employers should consider applying the following message to employees' payslips:

'1.25% uplift in NICs funds NHS, health & social care'

If you chose to apply this optional message to your employee's payslips, you should remove it before processing a pay date on or after 6 November 2022. Read more in our guide on how to remove a payslip comment added for the Health & Social Care Levy.