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National Insurance Contributions Increase

From April 2022 National Insurance Contributions (NIC)  will increase by 1.25% to finance health and social care. This increase will mean that employees NIC will increase from 12% to 13.25% for those in the basic rate tax band and the self employed NIC will increase from 9% to 10.25%. On income above the basic rate tax band the NIC will increase from 2% to 3.25%.

Employers NIC also increases from 13.8% to 15.05%.

Dividend tax rates will also be increasing by 1.25% from 7.5% to 8.75% for basic rate taxpayers and from 32.5% to 33.75% for higher rate taxpayers. Top rate taxpayers will see their dividends being taxed at 39.35% compared to 38.1% currently.

As a result of the changes, the amount that individuals will pay towards their persoanl care throughout their life will be capped at £86,000. Those with assets of less than £20,000 will not need to make any payments towards their personal health care.. Individuals having assets between £20,000 and £100,000 will be eligible for means tested support.

 

Call us on 0121 448 7466 for a free meeting

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