New Health and Social Care Levy announced
07 September 2021
Following increased speculation that the government was intending to increase National Insurance (NI) rates for employees, to provide funds to aid the social care sector, it was today confirmed that a new Health and Social Care Levy will be introduced. This will mean workers pay an additional 1.25%.
Individuals who are above the State Pension Age and still working will also be required to contribute to the Levy. So will self-employed individuals and employers.
A policy paper has been released, which discusses the timeline for the changes as follows:
"The Levy will be effectively introduced from April 2022, when NICs for working age employees, self-employed and employers will increase by 1.25 per cent and be added to the existing NHS allocation. From April 2023, once HMRC’s systems are updated, the 1.25 per cent Levy will be formally separated out and will also apply to individuals working above State Pension age, and NICs rates will return to their 2021-22 levels."
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