NIM01605 - Class 1 structural overview from 6 April 2009: 2022 to 2023 tax year only: background

Health and Social Care Levy Act 2021 (HSCLA 2021)

Health and Social Care Levy (Repeal) Act 2022

National Insurance Contributions (Increase of Thresholds) Act 2022

The Health and Social Care Levy Act 2021 (HSCLA 2021) introduced a new 1.25% Health and Social Care Levy which was to be payable where an employee, employer or self-employed individual had a liability in respect of a “qualifying National Insurance contribution” – Class 1, Class 1A, Class 1B and Class 4 NICs. The levy would also have applied if an individual would be liable in respect of a “qualifying National Insurance contribution” were it not for the relevant pension age restrictions. The effect of this is would have been for individuals in work who are over State Pension age to be liable to this Levy. Funds raised from the Levy were to be used for the purpose of health and social care.

Except for modifications to facilitate the transitional arrangements for the 2022-2023 tax year, HSCLA 2021 did not amend existing NICs and social security benefits legislation.

The Health and Social Care Levy (Repeal) Act 2022 reversed the 1.25 percentage point increase in NICs for the remainder of the 2022-23 tax year for employers, employees and the self-employed and also reversed the introduction of the Health and Social Care Levy as a separate tax from April 2023.

The National Insurance Contributions (Increase of Thresholds) Act 2022 increased the Primary Threshold for payments of earnings made on or after 6 July 2022.