The National Insurance increase to cover social care costs will be introduced from April 2022. The amount you contribute will increase by 1.25% which will be spent on the NHS and social care across the UK. This increase in National Insurance contributions will apply to:
- Class 1 (paid by employees)
- Class 4 (paid by self–employed)
- secondary Class 1,1A and 1B (paid by employers)
The class you pay depends on your employment status and how much you earn. If you are of working age and earn less than the National Insurance Primary Threshold or Lower Profits Limit you will pay nothing. Employers will only pay on earnings above the Secondary Threshold. If you have not yet budgeted for these increases or need assistance in calculating how they will impact your business, please contact Composure Accounting and one of our team will be happy to help.