New Tax to be Introduced in April 2022
The new tax was announced in September 2021. The levy will be charged at 1.25 percentage points on amounts such as employee earnings that are subject to National Insurance Contributions (NIC). Funds raised by the levy will be ringfenced for health and social care purposes.
A standalone levy charge will be introduced from April 2023, to give HMRC time to put in place systems and procedures to deal with what will effectively be a new tax. Until the levy is introduced, most NIC rates will rise temporarily by 1.25 percentage points from April 2022.
The increase will affect:
- Employers and employees – Class 1 NIC
- Employers – Class 1A NIC
- Employers – Class 1B NIC
- Self-employed – Class 4 NIC
To find out more, visit Health and Social Care Levy page on gov.uk.