The Chartered Institute of Payroll Professionals
News On Line
08 September 2021
Today, (7 September) the Chancellor of the Exchequer, Rishi Sunak has announced the date for this year’s Autumn Budget.
In a letter published today, he stated:
“The Prime Minister and I have agreed that this will be a multi -year Spending Review which will set resource and capital budgets for 2022-23 to 2024- 25 and conclude on 27 October 2021, alongside Autumn Budget 2021”
The chancellor will set out how he intends to “Build Back Better”, deliver the priorities of the British people and continue to support businesses and jobs into the future.
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"Triple Lock" mechanism scrapped for 2022/2023
08 September 2021
The government has announced that it will scrap the "triple lock" for the financial year 2022-23. This mechanism ensures that state pensions rise by inflation, wage growth, or 2.5%, whichever is the highest. Therese Coffey, Work and Pensions Secretary, told MPs that the temporary, one-year change would mean pensions would rise by 2.5% or in line with inflation next year. The state pension would have risen by over 8% due to extraordinary changes in wages caused by the furlough scheme without this change. The one-year adjustment will be introduced for 2022-23 only and the triple lock will be restored the following year.
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Heath and Social Care levy – What we know so far
09 September 2021
Following on from the announcement made by Prime Minister, Boris Johnson, on 7 September 2021, further details have been published on how a new Health and Social Care Levy will be operated.
Tax year 2022-2023
It has been confirmed that for the tax year 2022-23 the levy charge of 1.25% will be a collected under the deduction of National Insurance Contributions (NIC).
For employees, this means that NICs will be collected at a rate of 13.25% calculated on earnings above the Primary Threshold (PT) up to the Upper Earnings Limit (UEL). The percentage applied above the UEL will also be increased to 3.25% (previously 2%).
For employers, Class 1 NICs will increase to 15.05% on earnings above the Secondary Threshold (ST). In addition, an increase of 1.25% will also be attributed to Class 1A and 1B NICs.
Employers are encouraged to include a generic message on payslips, to show that the increase in NICs relates to the Health and Social Care Levy.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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