{"id":4267,"date":"2021-09-07T14:41:11","date_gmt":"2021-09-07T13:41:11","guid":{"rendered":"https:\/\/www.goodmanjones.com\/blog\/?p=4267"},"modified":"2024-03-12T11:46:16","modified_gmt":"2024-03-12T11:46:16","slug":"the-health-social-care-levy","status":"publish","type":"post","link":"https:\/\/www.goodmanjones.com\/blog\/the-health-social-care-levy\/","title":{"rendered":"The Health &#038; Social Care Levy"},"content":{"rendered":"<p>Followin<img loading=\"lazy\" decoding=\"async\" class=\" wp-image-4349 alignright\" src=\"https:\/\/goodmanjones.com\/blog\/wp-content\/uploads\/2021\/09\/gov-300x200.png\" alt=\"\" width=\"317\" height=\"211\" srcset=\"https:\/\/www.goodmanjones.com\/blog\/wp-content\/uploads\/2021\/09\/gov-300x200.png 300w, https:\/\/www.goodmanjones.com\/blog\/wp-content\/uploads\/2021\/09\/gov-624x417.png 624w, https:\/\/www.goodmanjones.com\/blog\/wp-content\/uploads\/2021\/09\/gov.png 641w\" sizes=\"auto, (max-width: 317px) 100vw, 317px\" \/>g the rather hectic noises over the last couple of days regarding the help needed for the NHS and Social Care reform, the government today have made a wide range of announcements, including the Health &amp; Social Care Levy. My comments are purely on the <a href=\"https:\/\/www.goodmanjones.com\/who-we-help\/personal-tax-planning\">tax aspects<\/a>.<\/p>\n<p>The announcements are to be funded by way of an increase of 1.25% on National Insurance contributions for both employees and employers from 6 April 2022.\u00a0 <a href=\"https:\/\/www.gov.uk\/government\/publications\/health-and-social-care-levy\/health-and-social-care-levy\">For the first year this will simply be an addition to the NI rates<\/a> (although called the Health and Social Care Levy), and from 6 April 2023 (when \u201cworking\u201d people over the state pension age also start to pay the 1.25% on their earnings) it will be shown separately on payslips.\u00a0 This appears to be an attempt to soften the blow of breaking a Conservative pledge, and also gives them the opportunity to scrap a \u201ctax\u201d in the future.<\/p>\n<p>The burden is meant to fall more onto higher paid individuals so to avoid some simple tax planning a 1.25% increase will be made to the \u201cdividend\u201d rates of tax from 6 April 2022 and will apply UK wide.<\/p>\n<p>Initial thoughts are that companies should be looking at their distributable reserves and considering paying dividends before 6 April 2022 and employers could consider salaries and bonuses before the same date as well.\u00a0 Accelerating these may have other implications outside of tax (employment law in particular).<\/p>\n<p>Please don&#8217;t hesitate to contact me, or your usual Goodman Jones partner, if you&#8217;d like to talk through the implications for you.<\/p>\n<p><strong>UPDATE: Following the 2024 Spring Budget, and taking affect on 6 April 2024, National Insurance Contributions (NICs) will be reduced to 8% for earnings above the primary threshold and below the upper earnings threshold, with the the main rate of Class 4 national insurance contributions reduced to 6%.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Following the rather hectic noises over the last couple of days regarding the help needed for the NHS and Social Care reform, the government today have made a wide range of announcements, including the Health &amp; Social Care Levy. My comments are purely on the tax aspects. The announcements are to be funded by way[&#8230;] <\/p>\n<div class=\"brown_button\"><a class=\"more-link\" href=\"https:\/\/www.goodmanjones.com\/blog\/the-health-social-care-levy\/\">Read More<\/a><\/div>\n","protected":false},"author":34,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[512,471,468,885,16,11],"tags":[1017,74],"class_list":["post-4267","post","type-post","status-publish","format-standard","hentry","category-business-performance-improvement","category-individuals-families","category-news","category-personal-tax","category-tax","category-uk-business-entrepreneurs","tag-health-social-care-levy","tag-national-insurance"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Health &amp; Social Care Levy<\/title>\n<meta name=\"description\" content=\"Following the government announcement, what does the Health &amp; Social Care Levy means for National Insurance rates and who will the burden will fall on?\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.goodmanjones.com\/blog\/the-health-social-care-levy\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Health &amp; Social Care Levy\" \/>\n<meta property=\"og:description\" content=\"Following the government announcement, what does the Health &amp; Social Care Levy means for National Insurance rates and who will the burden will fall on?\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.goodmanjones.com\/blog\/the-health-social-care-levy\/\" \/>\n<meta property=\"og:site_name\" content=\"London Chartered Accountants Blog | Goodman Jones London Accountants\" \/>\n<meta property=\"article:published_time\" content=\"2021-09-07T13:41:11+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-03-12T11:46:16+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/goodmanjones.com\/blog\/wp-content\/uploads\/2021\/09\/gov-300x200.png\" \/>\n<meta name=\"author\" content=\"Janet Pilborough-Skinner\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@GoodmanJones\" \/>\n<meta name=\"twitter:site\" content=\"@GoodmanJones\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Janet Pilborough-Skinner\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.goodmanjones.com\\\/blog\\\/the-health-social-care-levy\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.goodmanjones.com\\\/blog\\\/the-health-social-care-levy\\\/\"},\"author\":{\"name\":\"Janet Pilborough-Skinner\",\"@id\":\"https:\\\/\\\/www.goodmanjones.com\\\/blog\\\/#\\\/schema\\\/person\\\/0bd75d15082aac18d1b5c36b00345ffe\"},\"headline\":\"The Health &#038; 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