The Government have introduced a
new Health and Social Care Levy which might increase your National Insurance (NI)
contributions when this comes into effect on 6 April 2022. The increase in both
your contributions and employer contributions will be used to help fund the NHS
health and social care system.
Contributions will be increased
for one year by 1.25%, from 6 April 2022 to 5 April 2023. From 6 April 2023,
the national insurance contribution rates will go back down to 2021 to 2022
levels and the levy will become a new separate tax of 1.25%.
From April 2022 if you earn more
than £9,880, you will be impacted by the increase (unless you are over state
retirement age); the University will automatically deduct the increased
contributions from your salary and pay this to HMRC on your behalf through
Payroll; alongside the increased University contributions.
Employee NI rates are increasing
from 12% to 13.25% and employers’ contributions are increasing to 15.05%. Staff
who earn over the primary threshold of £9,880 per annum will pay the new
increased employee contribution of 13.25%. Then 3.25% on any earnings over
£50,270 per annum.
How will the increase impact
me from April 2022?
|
Annual Salary
|
6 April 2021 – 5 April 2022
(Current Tax Year)
|
6 April 22 - June 2022 (New
Tax Year)
|
Difference (approx. per
month)
|
EMPLOYERS
CONTRIBUTIONS
2021/2022
(Current Tax Year)
|
EMPLOYERS
CONTRIBUTIONS
2022/2023
(New Tax Year)
|
|
£26,341
|
£2,012.76
|
£2,181.08
|
£14.03
|
£2,415.14
|
£2,594.77
|
|
£35,326
|
£3,090.96
|
£3,371.60
|
£23.39
|
£3,655.07
|
£3,947.01
|
|
£50,296
|
£4,884.76
|
£5,352.52
|
£38.98
|
£5,720.93
|
£6,200.00
|
You can use this calculator
to check what your NI contributions will be in the next tax year.
Following the Chancellors spring budget
statement, the level at which you start to pay National Insurance from July
2022 will increase from £9,880 to £12,570. This means that from July 2022
employees will not make NI contributions until they earn over £12,570, the same
level that income tax starts. We will advise further once HMRC issues further information
later in the year.