The start of the 2022/23 tax year on April 6th, will see two significant changes to pay implemented but how will these changes to National Insurance and Living Wage effect your contractors?
Health & Social Care Levy
This temporary increase to National Insurance will be deducted from 6th April 2022 until 5th April 2023 and these contributions will help to fund the NHS and social care across the UK.
The Health & Social Care Levy will be a separate tax in its own right from Apr 2023.
Employees, employers, and the self-employed will all pay an additional 1.25% on their NI deductions.
The threshold before NI deductions will also raise on April 6th 2022, from £9,568 to £9,880.
The tables below give an overview of what this new Health & Social Care Levy uplift to National Insurance will mean for Employees and Employers.
National Living and Minimum Wage increase
Alongside the Health & Social Care Levy increases to National Insurance, increases to National Living and Minimum Wage, will also come into effect on the 6th April 2022.
The table below shows the increase in National Living/Minimum Wage from April 2022.
Please ensure your contractors are aware of the new Health & Social Care Levy deductions and the National Living and Minimum wage increases.
Our Customer Service teams will be available to answer any queries on how these changes will impact the contractor's pay.
If you need further support on the changes, please don’t hesitate to get in touch with us at customercare@azureglobal.com