Summary
Description
What is the National Insurance increase reversal?
On 6 April 2022, National Insurance Contributions (NICs) increased by 1.25%. The Health and Social Care Levy in April 2023 was to replace the NIC increase.
The Chancellor of the Exchequer confirmed the increase reversal from 6 November 2022. This meant the new Health and Social Care Levy was not introduced in April 2023.
For more information, visit the GOV.UK website (opens in a new tab)
Resolution
What do I need to do?
We released an automatic update of Sage Payroll, on 20 October 2022, to reflect this change.
You can process your pay runs as normal. The change takes effect from your first pay run dated on or after 6 November 2022.
There are 3 scenarios where you may need to take action:
Your last pay run was processed on or before 20 October, and your next pay run is on or after 6 November
You have moved your pay date forward to 6 November
You may have moved your pay run to 6 November from an earlier date. For example, from 4 November to 6 November. In this scenario, you need to remove and re-enter the pay on your first pay run dated on or after 6 November. This is to ensure the pay run uses the new calculations.
You'll also need to remove the default payslip message that was introduced when the 1.25% increase came into effect in April 2022.
NOTE: If you have a custom payslip message that includes the 1.25% increase to NICs, you'll need to amend or remove this before you complete the pay run.
You have already completed your first pay run dated on or after 6 November
You may have already completed your first pay run dated on or after 6 November, prior to the update. In this scenario, you need to edit this completed pay run and remove and re-enter the pay. This is to ensure the pay run uses the new calculations.
This will generate a correction on your next pay run and on your next P32 report.
NOTE: If you have a custom payslip message that includes the 1.25% increase to NICs, you'll need to amend or remove this before you complete the pay run.
Related Solutions
For help processing your pay run, read our processing a pay run article.
For help correcting a completed pay run, read our correct a completed pay run article.
For help with payslip messages, read our payslip messages article.
Africa
Asia
Australia
Canada
France
Ireland
Kenya
Nigeria
Portugal
South Africa
Spain
United Arab Emirates
United States
Germany