We’ve all seen the line item National Insurance Contribution on our pay slips, it’s a deduction that is factored in automatically if you work on PAYE basis. And, whether it’s from coffee machine small-talk or national new outlets, we’ve all been made aware that there will be increases to NIC’s when the new tax year hits. The increases are set to go towards improvement in the health and social care sectors of the country and in April 2023 the NIC increase of 1.25% will be replaced by a new Health and Social Care Levy (the rates are proposed to revert to current levels at that point).
So how does this look to an umbrella employee? Here’s the breakdown:
So exactly how much more will you pay in NIC’s? We’ve added a brief example below.
Of course, it’s not a case of one model fits all, there are plenty of factors that may affect your personal deductions, but if you have any concerns or questions relating to the new rates please do not hesitate to contact us.
There are other important changes that may affect your pay in the new tax year, find out more about Increases to National Minimum Wage or how Your 2nd Payment Of The New Tax Year may be affected.