- Farrell & Farrell
Reversal of National Insurance Increase
From the 6 November 2022, the 1.25% cut to National Insurance rates for employees and employers takes effect across the UK. The tax cut was announced by the government on 22 September, as part of the reversal of April’s rise in National Insurance.
Working people across the UK will begin receiving the tax cut in their payslips this month via their employer’s payroll. All workers earning over the annual national insurance threshold of £12,570 will see a fall in their national insurance bill in November compared to July. The rates will return for employees from 13.25% to 12%, (higher earners 3.25% to 2%) and return for employers from 15.05% to 13.8%.
The Government have stated that funding for health and social care services will be maintained at the same level as if the Health & Social Care levy were in place.
It is estimated that 30million people will be £500 better off on average next year. So working people will keep more of the money that they earn.