Increases in National Insurance Contributions and Dividend Taxes are being introduced by the government to provide additional resources for the NHS and social care services.
National Insurance:-
The levy will apply to employees and employers who pay Class 1 N.I., from April 2022 the rate will rise by 1.25%
Class 4 N.I. (on profits) for the self employed will also rise by 1.25%
Tax Year | Employee Rate | Employee Rate | Employer Rate | Self Employed Rate | Self Employed Rate |
| Main | Higher | | Main | Higher |
2021/22 | 12.00% | 2.00% | 13.80% | 9.00% | 2.00% |
2022/23 | 13.25% | 3.25% | 15.05% | 10.25% | 3.25% |
Director Dividends:-
Dividend tax will also rise by 1.25% from April 2022
Tax Year | Basic Rate | Higher Rate | Additional Rate |
2021/22 | 7.50% | 32.50% | 38.10% |
2022/23 | 8.75% | 33.75% | 39.35% |
You can find out more about the governments plans for health and social care here:-
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