Payroll Legislation

How Much is the New Health and Social Care Levy?

Legislation

How Much is the New Health and Social Care Levy?

Due Date

April 2022

Summary

From April 2022, a new ringfenced Health and Social Care Levy of 1.25% will be introduced which will apply to those who pay Class 1
(employee and employer), Class 1A and 1B and Class 4 (self-employed) NICs.

The levy will also apply to individuals above State Pension age with employment income or profits from self-employment above
£9,880.

The levy will be administered by HMRC and collected through the current reporting and collection procedures for NICs i.e. Pay As You Earn and Income Tax Self-Assessment.

Like National Insurance, levy contributions will apply UK-wide, people will pay the same in England, Scotland, Wales and Northern Ireland.

From April 2022, where possible, a payslip message should be included on employee payslips: 1.25% uplift in NICs funds NHS, health and social care.

 ​Standard NICs - A​Health & Social Levy - A​Increases per annum​
Annual ​Monthly​Calc EEs​Calc ERs​Calc EEs​Calc ERs​EEs​ERs​
20000.00​1666.67​101.24​125.40​111.79​136.75​126.55​136.30​
30000.00​2500.00​201.24​240.40​222.20​262.17​251.55​261.30​
40000.00​3333.33​301.24​355.40​332.62​387.59​376.55​386.30​
50000.00​4166.67​401.24​470.40​443.04​513.00​501.55​511.30​
60000.00​5000.00​420.14​585.40​472.35​638.42​626.55​636.30​

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