Employment Tax

Health and Social Care Levy

Produced by Tolley
  • 03 Dec 2021 14:32

The following Employment Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Health and Social Care Levy
  • Introduction of Health and Social Care Levy and temporary uplift in NIC rates
  • How does this affect those over State Pension Age?
  • What about Class 2 and Class 3 NIC?
  • How does this affect those paying the Reduced rate National Insurance for married women?
  • How will the Health and Social Care Levy interact with NIC reliefs?
  • Administration and collection of the HSCL

Health and Social Care Levy

Introduction of Health and Social Care Levy and temporary uplift in NIC rates

The Government announced a new Health and Social Care Levy (HSCL) from 6 April 2023. This will be a levy of 1.25% charged and collected in the same way as NIC. It will apply to all income to which Class 1 (both primary and secondary), Class 4, Class 1A and Class 1B NIC is charged as well as to employment income of those over the State Pension Age.

From 6 April 2022 to 5 April 2023, the relevant NIC rates will be raised by 1.25% for one year. This will apply to Class 1 (both primary and secondary), Class 4, Class 1A and Class 1B NIC, but not to those over the State Pension Age.

From 6 April 2023, once HMRC systems (and presumably employers’ payroll systems) are updated, the HSCL will be introduced separately. The table below illustrates the rates over the coming three tax years:

YearClass 1 employee NIC ratesEmployee Health and

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