Another big news story over the past couple of months has been the 1.25 percentage points increase to class 1 (i.e. employee) national insurance contributions, for which the government have confirmed that the additional funds raised as a result of the increase will be spent on the NHS, health and social care in the UK. This means that (should you qualify to pay national insurance contributions), from April 2022 you will be contributing at a rate of 13.25% instead of the previous 12%. The increase is set to last for the whole of the 22/23 tax year, so April 22 – March 23’s wage slips for all monthly paid staff.
In addition, as part of the spring budget, The Chancellor of the Exchequer also announced that with effect from July 22’s monthly pay run, the threshold at which national insurance starts to be deducted from salaries will increase from £9,880 p.a. to £12,570. This means that with effect from July 22 – Mar 23, many staff (in particular, staff on lower salaries) will actually see a reduction in the amount of national insurance that they pay when compared to the 21/22’s tax year.
Secondary (i.e. employer) national insurance contributions have also increased by 1.25 percentage points, from 13.80% to 15.05% for the 22/23 tax year. The secondary national insurance threshold will not increase however. This will remain at £9,100 p.a.
More information about the national insurances changes can be found here > https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2022-to-2023