HMRC new guidelines on National Insurance Changes
Jul 26, 2022
Who all will be impacted?
- – Employees
- – Self-employed people who have a National Insurance Contributions (NICs) liability.
- – Employers
Earlier National Insurance contributions for working-age employees, self-employed people, and employers was increased by 1.25% and most employees were paying 12% in 2021-22 are paying now 13.25% in 2022-23 applicable from 6th April 2022. Employer contribution has risen from 13.8% in 2021-22 to 15.05% in 2022-23.
Now from 6th July 2022, as an employee, you will be able to earn more before you start paying National Insurance. This means you may pay less tax, after accounting for the recent Health and Social Care Levy as the primary threshold has been increased for employees as per below tables comparison given below.
If you’re self-employed the amount of profit you can earn before you pay National Insurance contributions is also increasing.
For more information, please go through the HMRC Guidance by Click Here