If you’ve worked in the UK, you’ve encountered national insurance. National insurance is paid by all employees, employers and those who are self-employed. Employees pay it on their wages, employers pay extra contributions for their staff and the self-employed pay it on their profits. Recently, changes have been announced that will alter national insurance paid by all.
How Is National Insurance Changing
Starting at the beginning of July, there were changes made to national insurance. There was a change to the national insurance threshold as well as an adjustment to the amount of national insurance contributions that have to be made. The national insurance increase was 1.25% per month, increasing it from 12% to 13.25% per month. The national insurance threshold has changed to £12,570, just over £2500 increase from £9,880.
What Does This Mean For Me?
Your national insurance contribution will change based on how much you earn. For example if you make £20,000 a year, you will pay less national insurance, a decrease of £178. Alternatively, if you make £50,000, you’ll pay £197 more. This amount increases the more you earn.
Why Has National Insurance Increased?
During the pandemic, there was a large amount increase in NHS funding. In order to supplement this cost, the government are now increasing the amount paid in national insurance. This increase will ease the pressure on the NHS, and will then move to providing more social care.
How We Can Help.
Here at Happie Group, we’re eager to assist you with ensuring your national insurance contributions are all correct. It’s important to stay on top of all payroll news, and Happie Group are able to ensure everything is up to date and on time, every time. If you’re having issues with your payroll, or need services that are entirely correct, contact us today.
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