For latest updates please visit GOV UK using the link below.
As you have probably already heard, on the 7th September the government announced tax changes to fund £12 billion a year to be spent on the NHS and social care across the UK.
National Insurance contributions will increase by 1.25% for one year only for employees, employers and the self-employed from April 2022. This will cover both Class 1 (employee and employer), Class 1A and 1B and Class 4 (self-employed) NICs. Those above State Pension age are not affected by these changes.
The government will also increase by 1.25% from April 2022 the rate of income tax which is paid by people who receive dividend income from shares.
From April 2023, a new ringfenced Health and Social Care Levy of 1.25% will be introduced which will apply to those who pay Class 1 (employee and employer), Class 1A and 1B and Class 4 (self-employed) NICs and will also be extended to those over State Pension age who are in work. When the new levy comes into effect, National Insurance rates will revert back to current levels.
The levy will also apply to individuals above State Pension age with employment income or profits from self-employment above £9,568.
For more information regarding the tax changes for Health and Social Care. Please visit Gov.UK and search for 'Our Plan for Health and Social Care'.
Should you have any questions then please don't hesitate to ask. We are here to help and will ensure to keep you updated.