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

norsefox

kimwp said:

I'm personally saddened (as a 40% tax payer) that there is no plan for NI to rise to 12% for all. It is ridiculous that it drops by 10% for people earning more money - so far everyone on that rate that I have spoke to was not even aware that their NI contributions drop.

As others have noted, increasing NI to 12% for HRT is not what you think it is.

As a Scottish tax payer, I already pay 41% PAYE from £43k and above AND pay 12% NI between ~£43k and £50.3k for a combined marginal tax rate of 53%.  With two children I then have a massive further tax hit through full child benefit clawback above that.

Yes, it's a first world problem, but with Scottish tax rates, child benefit reduction, and NI increases to come, I'll lose ~£4,000 per year more than I would have if the rules had been retained as they applied in 2010.

With rampant inflation and an employer that refuses to recognise how inflation whittles away at wages, I'm expecting to have lost more than 10% of my salary between 2018 and 2022.

sheramber

But your wife got the benefit of the child benefit payments.

Diane06

My employer has taken the 1.25% National Insurance increase off my March pay, paid to me tomorrow on the 5th April, one day  before this increase is supposed to come into effect. The reason given is our financial year is different, so March is our period 1 but my daughter works for a company who are the same and she has not had the National Insurance increase applied. Any help would be greatly appreciated to help me understand. Thanks in advance. 

Grumpy_chap

Diane06 said:

My employer has taken the 1.25% National Insurance increase off my March pay, paid to me tomorrow on the 5th April, one day  before this increase is supposed to come into effect. The reason given is our financial year is different, so March is our period 1 but my daughter works for a company who are the same and she has not had the National Insurance increase applied. Any help would be greatly appreciated to help me understand. Thanks in advance. 

That would be better as a new thread.

[Deleted User]

Diane06 said:

My employer has taken the 1.25% National Insurance increase off my March pay, paid to me tomorrow on the 5th April, one day  before this increase is supposed to come into effect. The reason given is our financial year is different, so March is our period 1 but my daughter works for a company who are the same and she has not had the National Insurance increase applied. Any help would be greatly appreciated to help me understand. Thanks in advance. 

Agree that it should be a new thread. However, can you confirm that, on your payslip, it shows date of payment as 5th April (or earlier) and month 1 is indicated? Any payroll software that I have worked with would have serious problems with that.

Diane06

Sorry about posting in wrong forum, so thank you for responding.

It states pay period (M1) and payment date 05/04/2022.