Who is affected by the Health & Social Care Levy?

The introduction of a temporary increase in National Insurance of 1.25% for Employees, Self-Employed and Employers came into force on 6th April 2022 and will affect National Insurance Contributions in the following brackets:

  • Class 1
  • Class 1A
  • Class 1B
  • Class 4

Earnings above the Primary Threshold, £823 for April, May and June and thereafter, £1048, till the end of the 2022/23 tax year will be calculated at 13.25%/3.25% (Employees), 10.25%/3.25% (Self-Employed) and 15.05% (Employers).

The increased NI Contributions can be offset against the Employment Allowance in the 2022/23 tax year.

HMRC have requested that employers display the following message on employee payslips for the whole of the 2022/23 tax year: 1.25% uplift in NICs funds NHS, health and social care.

Any benefits given in the tax year 2021/22 and processed in 2022/23 will not be affected by the increase. 

However, this will change in the subsequent tax year.

From 2023/24, a new tax levy will be introduced to support UK health and social care bodies and NI Contributions will revert to the 2021/22 rates. Further details will be released in respect of how this will interact with the Employment Allowance.

Employees over the state pension age will pay a Health and Social Care Levy tax of 1.25% and employers will continue to pay 15.05%.

How can I prepare my organisation for the new financial year?

Our expert team will be able to assist you with any queries you have to ensure your employee information is up to date.