Boris Johnson announced last week that from April 2022 that the National Insurance(NI) will raise by 1.25 percentage points. One of the main reasons the Prime Minister has made this decision is due to the impacts from the pandemic on the NHS and to reduce the current crisis within the social care system.
The increase will affect:
- employees who pay National Insurance on their wages
- employers who also pay extra National Insurance contributions for staff
- self-employed who pay National Insurance on their profits
Employee’s National Insurance Contributions will rise from:
Main rate – 12% to 13.25%
Higher rate – 2% to 3.25%
For employees’ earning £20,000 a year, it will mean that they will pay an extra £130 whereas a salary of £50,000 will have an impact of £150.
Self Employed Class 4 NICs will raise from:
Main rate – 9% to 10.25%
Higher rate – 2% to 3.25%
For a better understanding of the changes to the National Insurance, get in touch with us at AIT Accountants, we are happy to help with any queries. Contact us at enquiries@aitaccountants.co.uk
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