2022 is the year where we move passed the pandemic. We have
to think positive. It has been a long and difficult two years. We must pick
ourselves up and get back on track. Whatever goals we had, we must try to
achieve these, even if we have to tweak our usual processes to create an
environment to allow us to progress.
As April gets closer, the new financial year starts and
with it some revised rules and regulations. We talk about the changes in
national minimum wage and the introduction of the social levy care. The social
levy is a 1.25% charge on National Insurance from April 2022. The rate
also affects Employers National Insurance, and the dividend rates will also
change in line with the new social care levy of 1.25%
Why is this levy being introduced?
The funds from the social care levy will be used for care
homes and funding for pensioners. This includes several reforms to how people
pay for adult social care in England, supported by £5.4 billion of investment
over the next three years.
The National Insurance contributions rates will decrease
back to 2021 to 2022 tax year levels and will be replaced by a new 1.25% Health
and Social Care Levy where the revenue will be ringfenced to support UK health
and social care bodies.
This will affect us all.
The new rates for National Insurance are below:
|
|
Rate from April 2022
|
Current Rate
|
|
Employee NIC
|
13.25%
|
12%
|
|
Self-Employed NIC
|
10.25%
|
9%
|
|
Employer NIC
|
15.05%
|
13.8%
|
Individuals above State Pension age will not be affected by
the temporary increase to National Insurance contributions for the 2022 to 2023
tax year but will be liable to pay the levy from April 2023.
National Minimum Wage
As with every April, the Government traditionally bring
changes to the national minimum wage rates. Following the advice from the Low
Pay Commission, the government will increase the National Minimum Wage from 01
April 2022.
Anyone that does not abide by these rules, can get big
fines.
The new rates from 01 April 2022 are below.
|
Category of worker
|
Hourly Rate
|
|
23+ Years old
|
£9.50
|
|
21 – 22 Years old
|
£9.18
|
|
18 – 20 Years old
|
£6.83
|
|
Under 18
|
£4.81
|
|
Apprentice
|
£4.81
|
Message us on nicola@crossaccountingservice.co.uk if
you want to discuss how this will affect you. Our staff from our Cardiff and
Bridgend office are always happy to help.
*Please note we will update this in the next few days, after today's Spring Budget announcement
