New Health and Social Care Levy announced

Following rising speculation that the government was about to raise employee National Insurance (NI) rates to help the social care industry, it was announced yesterday that a new Health and Social Care Levy would be implemented. Workers will have to pay an additional 1.25 percent.

Individuals over the State Pension Age who are still working will be obliged to pay into the Levy. Employers and self-employed people will also incur the tax.

Acumist will show the new charge on the payslips of our payroll clients.  If you would like help to understand how this will need to be implemented in your own systems, please get in touch

A policy paper has been released, which discusses the timeline for the changes as follows:

“The Levy will be effectively introduced from April 2022, when NICs for working age employees, self-employed and employers will increase by 1.25 per cent and be added to the existing NHS allocation. From April 2023, once HMRC’s systems are updated, the 1.25 per cent Levy will be formally separated out and will also apply to individuals working above State Pension age, and NICs rates will return to their 2021-22 levels.”