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HMRC employer bulletin asks employers to insert message on payslips about NIC increase

Makbool Javaid, Partner - Simons Muirhead & Burton

HMRC has asked employers to include a message for employees on all payslips between 6 April 2022 and 5 April 2023 to explain their increased National Insurance contribution. The message should read: “1.25% uplift in NICs funds NHS, health & social care.”

HMRC has requested this message to ensure that employees understand that their increased National Insurance contribution of 1.25 percentage points is helping fund public services.

Payroll software providers have also been asked to include this messaging in their software and wider support models. As background to this request, employers will recall that on 7 September 2021 the government announced a new 1.25% Health and Social Care Levy to fund investment in the NHS, health and social care. The Levy is effectively introduced from April 2022 when National

Insurance contributions for working age employees, self-employed people and employers will increase by 1.25 percentage points and be added to the existing NHS allocation.

From April 2023, the Levy will be formally separated from National Insurance contributions and will also apply to the earnings of individuals working above State Pension age. National Insurance contribution rates will then return to 2021 to 2022 levels and receipts from the Levy will go directly towards spending on health and social care.

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