National Insurance rates poised to increase
Last year, the government announced that it was going to increase the National Insurance rates by way of a Health and Social Care levy. These rates take effect from 6th April 2022 so it is important that you understand the effect that this will have on you as an individual, and/or as an employer.
The key increases you need to be aware of are:
Employee National Insurance increases from 12% to 13.25%
Employers National Insurance increases from 13.8% to 15.05%
Self-employed Class 4 National Insurance increases from 9% to 10.25%
Tax on dividends rises from 7.5% to 8.75% for basic rate taxpayers, from 32.5% to 33.75% for higher rate taxpayers, and 38.1% to 39.35% for additional rate taxpayers
Given the increase in these rates, it is even more imperative that your tax affairs are organised in a tax-efficient manner. For help in mitigating the effect of these rises, contact our tax adviser, Steve Steve.Tetley@rradar.com or call him on 01482 296923 for more information.