The Chartered Institute of Payroll Professionals
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The self-employed will also see an increase to their Class 4 contributions, with the main rate increasing to 10.25% and higher to 3.25%.
Tax year 2023 onwards
From April 2023, a new isolated Health and Social Care Levy of 1.25% will be introduced which will apply to both employer and employee Class 1 NICs, Class 1A and 1B (for employers) and Class 4 (self-employed) NICs. In addition to this, the levy charge will also be expanded to those over the State Pension Age who are in employment. NIC rates will revert to the 2021-2022 levels once the new levy charge comes into flourish.
With the addition of this new deduction, employers will need to ensure that this is expressed as a separate element on the employee’s payslip.
Employee Class 1 NICs
Employer Class 1, 1A & 1B NICs
Self Employed Class 4 NICs
Tax Year 2021-2022
12% / 2%
13.8%
9% / 2%
Tax Year 2022-2023
13.25% / 3.25%
15.05%
10.25% / 3.25%
Tax Year 2023-2024
12% / 2%
13.8%
9% / 2%
Employee
Employer
Self Employed
H&SC Levy 2023-2024
1.25%
1.25%
1.25%
What are your thoughts?
The CIPP’s policy and research team would like to hear your thoughts on the introduction of this new deduction. With salary sacrifice schemes offering National Insurance (NI) savings, will this influence your reward packages going forward? For example, will salary sacrifice pension schemes be promoted? Or cycle to work schemes introduced? Please send your thoughts and comments to policy@cipp.org.uk. Thank you in advance.
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Furlough figures hit a record low in July 2021 09 September 2021
The number of people on furlough has fallen to its lowest level since the start of the pandemic.
Figures released by HM Treasury today show the 1.6 million people were on furlough as of 31 July. This figure shows a drop of around 17% since the June figures were published – with 340.000 less people on the scheme.
At its peak, nearly nine million people were on the scheme at the height of the pandemic in May last year. The 1.6 million people on the scheme as at the 31 July is a record low, as the countdown to the scheme closure in September continues. In July, the level of support offered to employers reduced to 70% of an employee’s wages, with the remaining 10% (alongside employer’s national insurance and pension contributions) payable by the employer.
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The Chartered Institute of Payroll Professionals
Payroll: need to know
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