Employee NIC rates to increase by 1.25% from April 2022

September 17, 2021|In KRW Tax news|By Keith Witchell

The Prime Minister announced that in order to fund wide ranging reform to the health and social care sectors, it would be necessary to increase the rate of National Insurance paid by employees by 1.25% from April 2022. This will mean the current 12% rate on earnings from £9,568 to £50,270 increasing to 13.25%, and the current 2% NIC rate for earnings above £50,270 per annum, increasing to 3.25% from next April. For someone earning a gross salary of £30,000 per annum, this represents a reduction in their net pay of £255 per annum (£21 per month).

For further advice on this matter, please contact me.

Keith Witchell