As announced by the Prime Minister yesterday (Tuesday, September 7), National Insurance (NI) and dividend tax rates will be increased.
The health and social care increase has been made to help the NHS recover from the Coronavirus pandemic.
The NI rates will increase from April 2022 by 1.25%, and from April 2023 this will be taken as a separate levy called the Health and Social Care Levy.
Dividend tax rates will also increase by 1.25%.
“This increase will apply to primary and secondary Class 1 contributions,” said Melanie Tomkins, tax manager at Ellis & Co Chartered Accountants and Business Advisers.
“As of 2023 the levy will appear on your wage slip as the Health and Social Care Levy.”
Assuming the current NI thresholds apply, the table below shows the increase for employees:
|Salary||Current NT bill||Expected increased NI bill||Change|
For further advice on this or any other tax matter please contact Melanie on 01244 343504.
Ellis & Co Chartered Accountants and Business Advisers, Chester, North Wales and The Wirral - 01244 343504, email@example.com