27Jan
The National Insurance increase from April 2022
Every year the National Insurance thresholds and rates are reviewed with an eye to either having a national insurance increase or leaving them as they are.
For 6 April 2022 to 5 April 2023 the contributions will increase by 1.25%. The government state that this will be spent on social care in the UK and the NHS.
The national insurance increase will be applicable to:
- Employees – Class 1
- Self-employed – Class 4
- Class 1, 1A and 1B – employers
If you are over the State Pension age, this will not apply.
How the national insurance increase effects employees.
Class 1 National Insurance are the contributions that employees pay. The rates for most people for the 2021 to 2022 tax year are:
| Your pay | Class 1 National Insurance rate |
|---|---|
| £184 to £967 a week (£797 to £4,189 a month) | 12% |
| Over £967 a week (£4,189 a month) | 2% |
You’ll pay less if are a:
- married woman or widow with a valid ‘certificate of election’
- deferring National Insurance because you’ve got more than one job
Employers pay a different rate of National Insurance depending on their employees’ category letter.
If you need help on payroll issues we can help here.
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