On September 7th 2021 the government announced a new 1.25% Health and Social Care Levy to fund investment in the NHS and social care. For working age employees the Levy will be introduced from April 2022. This will also apply to self-employed individuals and it will be added to the existing NHS allocation.
From April 2023, the Levy will also apply to the earnings of individuals working above the State Pension Age. From April 2023, receipts from the Levy will go directly to spending on health and social care across all parts of the UK.
To ensure taxpayers understand that the increase in contributions is to help public services, HMRC are asking employers to include a message for their employees on all payslips between 6th April 2022 to 5th April 2023. They have asked for the message to read ‘1.25% uplift in NIC funds NHS, health & social care’.
HMRC have already contacted payroll software providers to request that this message is implemented.