New tax – the health and social care levy now in force

The new tax year on the 6^th April kickstarted the new Health and Social Care Levy, the dedicated funding source for the NHS and social care which aims to raise billions of pounds,

In the first year of operation, the levy will be collected via a temporary increase in National Insurance contributions of 1.25 per cent. However, from April 2023, it will operate as a stand-alone tax and the National Insurance rates will fall.

Every individual will contribute according to their means. Those who earn more pay more, with the highest 15% of people paying over half the revenues. However, the Chancellor’s Spring Statement last month. means that low earners will be shielded as from July, when the level at which people pay National Insurance on their income will rise to £12,570.

The health and social care levy affects  employers, employees and the self-employed. If you need assistance with calculating how the levy will impact on you, your employees or your business, please get in touch