To ensure taxpayers understood their increased National Insurance contributions from 6th April 2022, that the additional contribution was to help fund public services, HMRC asked employers and payroll agents to put a message on the payslip explaining what these funds would be used for.
Originally they asked that the message apply to all payslips for the Tax year 2022-23 reading:
1.25% uplift in NICs funds NHS, health & social care
Following the government Growth Plan 2022 announcements and the repeal of the new Health and Social Care Levy (H&SCL), National Insurance contributions are reduced for payments from 6th November 2022.
With this reduction, there is no longer an uplift and HMRC are now instructing employers to stop issuing the message to employees on the payslip.
There was always some debate on whether requested voluntary message was appropriate.
Some may have viewed it as a political message, other not understanding why an English message should impact and effect those in Northern Ireland, Scotland and Wales.
However, the change from the 6th November 2022 is significant, will employers want to apply a message to let employees know that their contributions are reduced. And then, Directors have a new blended rate which is different to non-directors.