It will increase by 1.25 percent for one year from April 2022, before the 1.25 percent Health and Social Care levy is introduced, which pensioners will also need to pay. Once the new National Insurance tax increase comes into effect this year, the average worker will pay an extra £255 annually in taxes.
Put into perspective, this means that an employee earning £20,000 a year will have to pay an extra £130.
Higher earners on a £50,000 salary would pay an additional £505.
Dividend tax rates, payments made by a corporation to its shareholders after corporation tax, are also set to rise by the same amount from April in a bid to alleviate the state-run NHS’s backlog.
READ MORE: Pension warning as Britons could be clobbered by ‘scary’ tax code
However, individuals earning under £9,564 a year, equivalent to £797 a month, won’t be subject to the new levy.
Millions of UK workers will be affected as the new Build Back Better government plan will see the new Health and Social Care levy paid on all earned income, including a charge for those working beyond state pension age from April…
