Services tailored to you...
With over five decades’ experience serving a diverse range of clients in the South West, we possess an unbeatable depth of knowledge across a wide range of industry sectors.
Our specialist partners and teams can provide expert advice on everything from farming and agriculture, to military tax allowances. We’re here to help you make the most of your planning opportunities so that you can grow with confidence.
The changes to the National Insurance (NI) regime will create significant demands on employers. It amounts to much more than making sure payroll systems are crunching the right numbers.
With NI contributions in an unusual state of flux, explaining all of the ups and downs is likely to mean significant employee communication is needed.
The first change is a one-year, 1.25% increase to Class 1 employer and employee NI contributions that started from 6 April 2022.
From 6 April 2023, the NI contribution rate will drop back to earlier levels and be replaced by the Health and Social Care Levy (HSCL). This is a standalone 1.25% levy, applying to earnings chargeable to Class 1 employer and employee contributions.
You may have been contacted by HMRC, who are asking payroll software providers and employers to use specific payslip messaging between 6 April 2022 and 5 April 2023, to explain the initial NI increase. Neither the messaging nor the wording is mandatory. Given the complexity and pace of change, you might want to consider your own communications strategy rather than simply adopting HMRC’s. This may be particularly relevant if you are in one of the devolved nations, where health care funding operates differently.
Do please contact us with any queries on the recent and forthcoming changes, or payroll procedures generally.