New Forest

12/01/2022

Health and Social Care – National Insurance contribution increase

Is your payroll ready for the new Health & Social Care Levy?

By now, we expect most people are aware of the increase in National Insurance and dividend tax for the Health & Social Care Levy, which comes into force from April 2022.

HMRC are asking that employee payslips provided for the 2022/23 tax year include the message ‘1.25% uplift in National Insurance contributions funds NHS, health and social care’. This sounds simple enough and won’t be an issue if your software provider is adding this to your existing payslip template, and therefore not creating any further work for already busy payroll departments, but unfortunately, not all software providers are.

This simple change can take various forms, depending on software functionality, but I know all it does is add to the risk of human error and creates additional processes, and especially in a bureau environment this extra step will add time very easily!  So although straightforward, we would recommend speaking with your software provider now, confirm what you will need to do to implement this change and start thinking about your internal processes early to iron out any potential problems.

For further information on national insurance, please contact James Alesbury on 023 8046 1222.

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