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T his is one of those occasions where the nature of producing a magazine, and the impact of editorial deadlines becomes very apparent. The term, ‘correct at the time of writing’ also holds great significance here, as things in this space could change very rapidly. So, at the time of writing, Liz Truss had been appointed as the new PM of the United Kingdom and leader of the Conservative party, following a leadership battle with former chancellor of the Exchequer, Rishi Sunak. You might be asking why this has any significance for payroll professionals, but there are potentially huge ramifications of this latest event, and this article seeks to uncover what they are… Scrapping the health and social care levy During the leadership campaign, Truss pledged to ‘start cutting taxes from day one’. This would be partly achieved by scrapping the increase to National Insurance (NI) we saw introduced for tax year 2022/23. From 6 April 2022, the NI rates increased by 1.25 percentage points to incorporate the health and social care levy, announced by former PM, Boris Johnson, on 7 September 2021. The intention was for that health and social care levy to be ringfenced out, and treated as a new deduction, with NI rates reverting to 2021/22 levels, from 6 April 2023. However, it looks like the separated-out levy may no longer be on the cards. While this news may be welcomed by many, due to the financial squeeze being experienced by many in the current cost-of-living crisis, this could also be very confusing for employees. They’ll have seen The intention was for that health and social care levy to be ringfenced out, and treated as a new deduction, with National Insurance rates reverting to 2021/22 levels, from 6 April 2023
What’s in store for payroll professionals?
The CIPP’s policy and research team discusses what could be on the agenda for payroll professionals, following the appointment of Liz Truss as prime minister (PM)
| Professional in Payroll, Pensions and Reward | October 2022 | Issue 84 50
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