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01254 589799

National Insurance Increase
National Insurance Increase

 

As most are aware, the amount of National Insurance you pay depends on your employment status and how much you earn.

National Insurance contributions are set to increase by 1.25 percentage points from 6th of April 2022 to 5th of April 2023.

This will be spent on the NHS, health and social care in the UK.

The increase will apply to: Class 1 (paid by employees); Class 4 (paid by self-employed); and secondary Class 1, 1A and 1B (paid by employers).

The increase will not apply if you are over the State Pension age.

 

 

How to pay

 

If you’re an employee, you pay National Insurance with your tax. Your employer will take it from your wages before you get paid, and your payslip will show your contributions.

If you’re a director of a limited company, you may also be your own employee and pay Class 1 National Insurance through your PAYE payroll.

If you are self-employed pay Class 2 and Class 4 National Insurance, depending on your profits. Most people pay both through Self Assessment.

You may be able to pay voluntary contributions to avoid gaps in your National Insurance record if you have profits of less than £6,515 a year, or if you have a specific job (such as an examiner or business owner in property or land) and you do not pay Class 2 National Insurance through Self Assessment.

If you have gaps and do not pay voluntary contributions, this may affect the benefits you can get, such as the State Pension.

If you have a specific job and you do not pay Class 2 National Insurance through Self Assessment, you need to contact HMRC to arrange a voluntary payment.

 

 

Contact Gow and Partners

 

Get in touch with our friendly team at Gow & Partners, who will be happy to answer any queries and take care of all of your accounting needs.

Simply call 01254 589799.

Alternatively, you can fill in a contact form, or send us an email at info@gowandpartners.co.uk.