What tax is actually going up in April 2022

sultan123

From this april 2022 what NI and tax increases are actually happening?

Also has personal allowance changed compared to 2021 tax year

Dazed_and_C0nfused

No tax rates are increasing unless Scottish resident for tax purposes.

Employees NI is increasing by about 10%.

Normal rate going from 12% to 13.25%

Upper rate is going from 2% to 3.25%

Standard Personal Allowance remains £12,570

sultan123

Who pays normal rate of 13%?

Do you mean employers pay 10%?

I don't get the differences

Dazed_and_C0nfused

Employees currently pay 12% (above the lower threshold).

That is increasing to 13.25% from 6 April 2022.

13.25 is roughly a 10% increase over 12.00.

sultan123

But where does 3.25% come in then

Dazed_and_C0nfused

The upper rate (earnings over £50,270) is currently 2%.

From 6 April 2022 it becomes 3.25%

sultan123

Dazed_and_C0nfused said:

The upper rate (earnings over £50,270) is currently 2%.

From 6 April 2022 it becomes 3.25%

This is where I am confused, I thought higher NI of 13% would be applicable for those earning over 50k?

Is the 3.25% tax the NHS tax Boris has introduced?

On-the-coast

1.25% has been added to both the upper and lower rates of employee NI

Yes this (together with some employer increase) is what the chancellor added for NHS etc. 
in future tax years it will be separated away from NI

sultan123

On-the-coast said:

1.25% has been added to both the upper and lower rates of employee NI

Yes this (together with some employer increase) is what the chancellor added for NHS etc. 
in future tax years it will be separated away from NI

But why would someone on a low salary pay 13% but someone on high salary pay only 3.25%

Dazed_and_C0nfused

sultan123 said:

On-the-coast said:

1.25% has been added to both the upper and lower rates of employee NI

Yes this (together with some employer increase) is what the chancellor added for NHS etc. 
in future tax years it will be separated away from NI

But why would someone on a low salary pay 13% but someone on high salary pay only 3.25%

They don't.

Someone on a low salary pays nothing.

Above the lower threshold you pay 13.25%.

That stops at £50,270 and you only pay 3.25% above that.

sultan123

Dazed_and_C0nfused said:

sultan123 said:

On-the-coast said:

1.25% has been added to both the upper and lower rates of employee NI

Yes this (together with some employer increase) is what the chancellor added for NHS etc. 
in future tax years it will be separated away from NI

But why would someone on a low salary pay 13% but someone on high salary pay only 3.25%

They don't.

Someone on a low salary pays nothing.

Above the lower threshold you pay 13.25%.

That stops at £50,270 and you only pay 3.25% above that.

So what salary as an example would you pay 13.25% on