HMRC ask employers to explain National Insurance rise on payslips

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HMRC has recently emailed employers, ‘strongly encouraging’ them to label the increased National Insurance contributions payable from April as ‘for the NHS’.

HMRC’s statement said ‘We are therefore requesting that employers include a message for affected employees on all payslips between 6 April 2022 and 5 April 2023, explaining the increased National Insurance contribution. The message should read: 1.25% uplift in NICs funds NHS, health and social care’. Although not mandatory, HMRC is strongly encouraging businesses to include the label.

From 2023, National Insurance rates will return to the current level with the increase being replaced by the ‘Social Care Levy’ which will be separately labelled on payslips.

HMRC have been in touch with payroll software providers to request that the message be included by default in the software.