Keeping you up to date

Changes in tax and National Insurance can be confusing. But we’re here to help. We’ll keep this page updated with the latest information so you can use it as a useful guide.

Key facts about the NI changes

Direct from the payroll team at Advantage Resourcing

What's changed?

In a nutshell, nothing.

For employees, National Insurance rose by 1.25 percentage points to 13.25% in April 2022.

This increase was reversed in November 2022 back to 12%.

What date rage was the NI increase applied to?

The increase happened in April and the reversal on 6 November 2022., so you would have seen more NI being taken from your pay in May – November 2022.

If you earned under £12,570 in the year, you won’t have noticed a difference as you don’t pay NI on earnings under this threshold.

Why were these changes being implemented?

According to the Government, the resultant taxes raised by the NI increase were to be used to support health services and social care across the country, including resolving the backlogs of an overstretched NHS and helping alleviate staff shortages and remediate falling government spending.

The government has now said the funding for the NHS and social care will come from general taxation.

Who isn't affected by the temporary change?

National Insurance Contributions are not owed by those earning below the threshold shown above, or on pension/investment income such as capital gains or dividends.

The following groups will not be affected by the changes to the National Insurance rate.

  • Those who have reached the state pension age of 66
  • Those who do not work and are therefore not required to pay National Insurance
  • Those who are below the age of 16
  • Workers earning less than £184 per week
  • Self-employed workers making a profit of less than £6,515 a year
Why wasn't the change permanent?

This change to National Insurance was temporary, and was touted as a way to raise additional money to spend on NHS and social care reform.

It was originally intended to return to it’s initial rate in April 2023, however the current government brought this reversal date forward to November 2022.

Questions? Queries?

You can always ask your recruiter, or get in touch for more information

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