NIC rates reduced & Health and Social Care Levy cancelled
• National Insurance contribution (NIC) rates will be cut by 1.25 percentage points for employees, employers and the self-employed, effectively reversing the uplift introduced in April 2022 for the rest of the tax year. This cut will take effect from 6 November 2022 and it will cover Class 1 (both employee and employer), Class 1A, Class 1B and Class 4 (self-employed) NICs
• the ring-fenced Health and Social Care Levy of 1.25% due to be introduced from April 2023 will also not go ahead
The full detail on all these changes will be published by HMRC on GOV.UK in due course, but we wanted to email you as soon as possible, so that you can make the appropriate changes in order to be ready for November 2022 payroll.
Please be assured that if you use HMRC Basic PAYE tools this software will be automatically updated to take account of these changes.