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

Jeremy535897

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]

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

[Deleted User] said:

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]

Dazed_and_C0nfused said:

[Deleted User] said:

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%.

SaverRate

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!!!

[Deleted User]

HarryDavies01 said:

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

HarryDavies01 said:

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

I'll be upping my salary sacrifice payments into pension as I suspect a lot of people will. 

Jeremy535897

HarryDavies01 said:

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

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%