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Changes to Health and Social Care Tax

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This guide explains the recent changes the government has announced about the extra tax charges to fund NHS and social care across the UK, and how they affect Sage 50cloud Payroll.


What are the changes?

  • From 6 April 2022, national insurance contributions (NICs) increase by 1.25% for one year only for employees, employers and the self-employed.
  • From April 2023, NI returns to the current rate and HMRC will collect the extra tax as a new Health and Social Care Levy

This change is being introduced to help the NHS and Social Care recover from the Coronavirus pandemic. 

What you need to do?

From 6 April 2022, HMRC has requested all payslips include a message, explaining the increased NIC.

NOTE: Don't worry, we'll include the later rate changes in the 2022/2023 and 2023/2024 tax year software updates so you always stay legislatively compliant.

National Insurance rises

The table below shows the current NICs based on an employees salary, and also the increased amount from April 2022.

Salary (£)Current NICs (£)NICs from April 2022 (£)Increase (£)

Further information

For more information around the Health and Social Care Levy changes, visit the government website.

Take a look >

If you'd like further information about legislation and how they effect you, why not take a look at our legislation hub?

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