National Insurance rates cut from 6 November 2022

On Thursday, the government announced in-year reductions to National Insurance rates and the cancellation of the Health and Social Care Levy as a separate tax. National Insurance contribution (NIC) rates will be cut by 1.25 percentage points for both employees and employers, reversing the increase introduced in April 2022.

This cut will take effect from 6 November 2022 and it will mean that Employee Class 1 NIC will reduce from 13.25% back to 12% whilst Employer NIC will reduce down from 15.05% to 13.8%.

The government also announced that the ring-fenced Health and Social Care Levy of 1.25% due to be introduced from April 2023 will also not go ahead.

Please do not hesitate to contact us if you have any queries with regards to this or any other payroll matter.