In April 2022 National Insurance contributions will increase by 1.25% to fund a health and social care levy:
- Employees : 12% > 13.25%
- Employers : 13.8% > 15.05%
They are set to revert back in April 2023, but the 1.25% increase will still be collected under the new “Health and Social Care Levy”.
How does this affect me?
| Annual Salary | EMPLOYEE Reduction in take home pay | EMPLOYER Increase in company tax bill |
| £20,000 | (£89) | £89 |
| £40,000 | (£339) | £339 |
| £60,000 | (£589) | £589 |
| £80,000 | (£839) | £839 |
| £100,000 | (£1,089) | £1,089 |
Obviously, those employers with the highest salary bill are going to have the highest tax bill, but it is the smaller businesses with the tighter margins that are going to be squeezed the most – and it ultimately will lead to a need to increase prices.
