📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

National Insurance contributions to rise by 1.25% points from April 2022 to fund social care costs

Options
1246789

Comments

  • Jeremy535897
    Jeremy535897 Posts: 10,733 Forumite
    10,000 Posts Fifth Anniversary Photogenic Name Dropper
    kuepper said:
    so actually a 10% plus increase in NI from 12% to 13.5% for class 1 payers
    13.25% not 13.5%.
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    Eighth Anniversary 1,000 Posts Photogenic Name Dropper
    edited 7 September 2021 at 10:00PM
    kuepper said:
    so actually a 10% plus increase in NI from 12% to 13.5% for class 1 payers
    10.4%

    Bit more for those earning over £50000.

    And for the self-employed - 9% to 10.25% is 13.9% increase.
  • Dazed_and_C0nfused
    Dazed_and_C0nfused Posts: 17,659 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    edited 22 January 2024 at 3:51PM
    kuepper said:
    so actually a 10% plus increase in NI from 12% to 13.5% for class 1 payers
    10.4%

    Bit more for those earning over £50000.

    And for the self-employed - 9% to 10.25% is 13.9% increase.
    Understatement of the day!
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    Eighth Anniversary 1,000 Posts Photogenic Name Dropper
    edited 22 January 2024 at 3:51PM
    kuepper said:
    so actually a 10% plus increase in NI from 12% to 13.5% for class 1 payers
    10.4%

    Bit more for those earning over £50000.

    And for the self-employed - 9% to 10.25% is 13.9% increase.
    Understatement of the day!
    I know - but I guess it really depends whether you earn 50010 (when it will remain close to 10.4%) or 120000 when (I calculate) the increase is 21.5%.
  • The biggest part of the scam is so many million will be going to Scotland, Wales, NI yet they wont be hit with the increase in National Insurance!!!
  • The biggest part of the scam is so many million will be going to Scotland, Wales, NI yet they wont be hit with the increase in National Insurance!!!
    It is U.K. wide - where did you hear that?
  • comeandgo
    comeandgo Posts: 5,930 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    The biggest part of the scam is so many million will be going to Scotland, Wales, NI yet they wont be hit with the increase in National Insurance!!!
    Off course we will, it is only our tax that is different rates.
  • unkle
    unkle Posts: 338 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    I'll be upping my salary sacrifice payments into pension as I suspect a lot of people will. 
  • Jeremy535897
    Jeremy535897 Posts: 10,733 Forumite
    10,000 Posts Fifth Anniversary Photogenic Name Dropper
    The biggest part of the scam is so many million will be going to Scotland, Wales, NI yet they wont be hit with the increase in National Insurance!!!
    Not quite that simple:

    "And while Scotland, Wales and Northern Ireland have their own systems, we will direct money raised through the levy to their health and social care services.

    So in total Scotland - yes - in total Scotland, Wales and Northern Ireland will benefit from an extra £2.2 billion a year Mr Speaker - and as this is about 15 per cent more than they will contribute through the levy, it will create a union dividend worth £300 million. Worth £300 million."


    From https://www.gov.uk/government/speeches/pm-statement-to-the-house-of-commons-on-health-and-social-care-7-september-2021

  • prowla
    prowla Posts: 14,012 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    bluphoto said:
    That language is absolutely clear that the CONTRIBUTION will increase in size by 1.25%. This is not the same as 9% contribution becoming a 10.25% contribution.
    The examples absolutely clearly show it is an increase of 1.25%, ie. 9% becomes 10.25%.

    NICs rates for 2021/22
    12%      / 2%
    13.8%9%        / 2%
    NICs rates for 2022/23 
    13.25% / 3.25%
    15.05%10.25% / 3.25%


Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.2K Banking & Borrowing
  • 253.2K Reduce Debt & Boost Income
  • 453.7K Spending & Discounts
  • 244.2K Work, Benefits & Business
  • 599.2K Mortgages, Homes & Bills
  • 177K Life & Family
  • 257.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.