· In 2022/23 there will be a new 1.25% ‘Health and Social Care Levy’(HSCL), operated as an increase on Class 1 (employer and employee) and Class 4 main and higher NIC rates. Thus, all the main in-work NIC rates will rise, although Class 2 (self-employed) flat-rate payments will be unaffected.
· In 2023/24, NIC rates will return to their current (2021/22) levels and the HSCL will reappear as a separate 1.25% charge. This separation is necessary to allow the HSCL to be charged on the earnings of employees and the self-employed who are over SPA – currently 66. At present employees and the self-employed past SPA do not pay NICs, although employers generally pay Class 1 NICs regardless of employee age.
· The current employer NIC reliefs, e.g. for apprentices under 25, will continue to apply.
| Tax Year | Employer* % | Employee % | Self-employed % | ||
| Main | Higher | Main | Higher | ||
| 2021/22: NICs | 13.80 | 12.00 | 2.00 | 9.00 | 2.00 |
| 2022/23: NICs | 15.05 | 13.25 | 3.25 | 10.25 | 3.25 |
| 2023/24: NICs HSCL | 13.80 1.25 | 12.00 | 2.00 | 9.00 | 2.00 |
| 1.25 | 1.25 | 1.25 | 1.25 | ||
| Threshold (21/22) | £8,840 | £9,568 | £50,270 | £9,568 | £50,270 |
* Under the Employment Allowance employers do not have pay the first £4,000 of Class 1 NICs unless the sole employee is a director OR total NICs for the previous tax year are £100,000 or more