On 7th September 2021, the government announced a new 1.25% Health and Social Care Levy to fund investment in the NHS and social care.
The Levy will be effectively introduced from April 2022 when National Insurance Contributions (NICs) for working age employees, self-employed people and employers will increase by 1.25% and be added to the existing NHS allocation. From April 2023, the Levy will be formally separated from NICs and also apply to the earnings of individuals working above State Pension age and National Insurance Contribution rates will return to 2021-22 levels.
To ensure taxpayers understand that their increased contribution is helping fund public services, HMRC are asking employers and payroll agents to put a message on payslip explaining what these funds will be used for.
The message applies to all payslips for the Tax year 2022-23 and should read:
1.25% uplift in NICs funds NHS, health & social care
The HMRC Employer Bulletin to be published on 8th December 2021 will reference the request for employers to include this message in their employees’ payslips from April 2022 and advise that payroll software developers have also been informed.