Changes to Health and Social Care Tax
Summary
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 50 Payroll.
Description
CAUTION: On 22 September 2022 the Chancellor, Kwasi Kwarteng, announced changes to National Insurance, and the Health & Social Care Levy. To read more, please click this link November 2022 changes to National Insurance and Health & Social Care Levy >
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.
NOTE: Following the Government's 22 September 2022 announcement, NICs will reduce by 1.25% from 6 November 2022. - From April 2023, NI returns to the prior rate and HMRC will collect the extra tax as a new Health and Social Care Levy. NOTE: Following the Government's 22 September 2022 announcement, the implementation of the Health and Social Care Levy has been cancelled.
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 (£) |
| 20,000 | 1,252 | 1,382 | 130 |
| 30,000 | 2,452 | 2,707 | 255 |
| 40,000 | 3,652 | 4.032 | 380 |
| 50,000 | 4,852 | 5,537 | 505 |
| 60,000 | 5,079 | 5,709 | 630 |
| 100,000 | 5,879 | 7,009 | 1,130 |
Further information
For more information around the Health and Social Care Levy changes, visit the government website.
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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Solution Properties
- Solution ID
- 210909080554657
- Last Modified Date
- Fri Sep 23 14:22:04 UTC 2022
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