HM Revenues & Customs (HMRC) is requesting employers include a message on the payslips of employees affected by the national insurance increase between 6 April 2022 and 5 April 2023, explaining the increased National Insurance contribution.
The message should read; “1.25% uplift in NICs funds NHS, health & social care.”
This is to help their employees understand that the increased National Insurance contribution of 1.25% from 6 April 2022 is helping fund the NHS, health & social care.
If you require any further information, please visit the HMRC page – Prepare for the Health and Social Care Levy.
HMRC has also been in contact with payroll software providers to request they include the messaging in their software.
In September 2021, the government announced a new 1.25% Health and Social Care Levy to fund investment in the NHS, health and social care. The levy will be introduced from April 2022 when National Insurance contributions for employees under State Pension age, self-employed people, and employers will increase by 1.25% and will be added to the existing NHS funding allocation.
From April 2023, the levy will be formally separated from National Insurance contributions and will also apply to the earnings of individuals working above State Pension age. National Insurance contribution rates will then return to 2021 to 2022 levels and receipts from the levy will go directly for spending on health and social care.