National Insurance contributions (NICs) will be increasing by 1.25% from 6 April 2022.
Naturally, this may be disconcerting for employees who have already been hit with rising living costs over the last 12 months. While nobody wants to see more money deducted from their pay packet, HMRC is keen to stress that the NI increase is being used to help fund the NHS through these difficult times.
To help employees understand this, HMRC has asked employers to include the following message on payslips for those who are affected:
“1.25% uplift in NICs funds NHS, health & social care.”
HMRC has been in contact with payroll software providers to request that they include this messaging in their software and wider support models. Please note that some employers will need to make the change themselves however.
For further information about the upcoming increase in NICs, please head to the gov.uk website or get in touch with PKB and we’ll be more than happy to help.
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