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Changes to Health and Social Care Tax

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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 Instant Payroll.

Description

What are the changes?

  • From April 2022, national insurance contributions (NICs) are increasing by 1.25% for one year only for employees, employers and the self-employed.
  • From April 2023, NI returns to its 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. 

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

What do I need to do?

Don't worry, you don't need to take any action, we've got you covered! We'll include the changes in the 2022/2023 and 2023/2024 tax year releases so you'll always stay legislatively compliant with Sage Instant Payroll.

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? Visit the hub now >

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