Following on from the government announced on 7 September 2021 the new 1.25% Health and Social Care Levy to fund investment in the NHS, health and social care, will come into effect from 6 April 2022.
The Levy is effectively introduced from April 2022 when the rate of National Insurance contributions for working age employees, self-employed people and employers will increase by 1.25 percentage point and be added to the existing NHS allocation.
From April 2023, the Levy will be formally separated from National Insurance contributions and will also apply to the earnings of individuals working above State Pension age. National Insurance contribution rates will then return to 2021-22 levels and receipts from the Levy will go directly for spending on health and social care.
Further information on the Health and Social Levy is available at Prepare for the Health and Social Care Levy
HMRC is asking all employers to include the following message on payslips in April 2022
“1.25% uplift in NICs funds NHS, health & social care.”
to help employees understand why their National Insurance Contributions have increased.