NIC for the following classes will increase by 1.25% for one year
Employee and employer Class 1
Class 1A (payable on benefits in kind)
Class 1B (payable on benefits included in the PAYE Settlement Agreement)
Class 4 (self-employed rate)
HMRC are asking employers to include the following message on payslips '1.25% uplift in NICs funds NHS, health & social care'
Will not apply to employees above the state pension age
6 April 2023 onwards
NIC rates will reduce back to their 2021/22 levels (i.e. removing the 1.25%), replaced by the Health & Social Care Levy of 1.25%
The levy will apply to the same classes of NIC as above with contributions reliefs remaining available for employees under 21, apprentices under 25, freeport employees, the employment allowance and armed forces veterans relief
Is payable by individuals above the state pension age - you may want to inform relevant employees so they are aware a deduction will be coming
The levy will be paid on the same basis as NIC, on the same levels of income
The levy will be collected through the PAYE system for employees/employers and returned to HMRC on the RTI system
Payslips will show the levy as a separate deduction
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01 February 2022 
Julia Ascott, Employment Taxes Specialist
