Breaking News: National Insurance increase reversed from 6 November 2022
27 September 2022
Kwasi Kwarteng has today announced that the 1.25 percentage point increase to National Insurance (NI) will be reversed from 6 November 2022.
In addition to the reversal of this year’s NI increase, next year’s health and social care levy will be repealed. The separate tax, planned to come into force in April 2023, would have replaced this year’s NI rise.
The Health and Social Care Levy (Repeal) Bill has been introduced to the house today. The changes will take place from 6 November 2022, payments made in relation of earnings before that date will remain at the increased rate and no refund need be made.
The chancellor is expected to confirm that increases to dividend tax rates are also to be revoked in tomorrow’s growth plan.
The chancellor has confirmed funding for the health and social care services will be protected and remain at the same level as if the levy were retained.
This change will see 920,000 business pay less in NI and 20,000 stop paying NI all together. The government estimates that this will save individuals £330 on average for 2022-23 and £135 for the rest of this tax year.
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