{"id":137,"date":"2021-11-07T14:00:00","date_gmt":"2021-11-07T14:00:00","guid":{"rendered":"https:\/\/finconcile.com\/blogs\/?p=137"},"modified":"2022-01-04T08:59:20","modified_gmt":"2022-01-04T08:59:20","slug":"from-april-2022-the-health-and-social-care-levy-will-be-accompanied-by-an-increase-in-national-insurance-and-dividend-tax","status":"publish","type":"post","link":"https:\/\/finconcile.com\/blogs\/from-april-2022-the-health-and-social-care-levy-will-be-accompanied-by-an-increase-in-national-insurance-and-dividend-tax\/","title":{"rendered":"From April 2022, The Health And Social Care Levy Will Be Accompanied By An Increase In National Insurance And Dividend Tax."},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"137\" class=\"elementor elementor-137\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-eb57858 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"eb57858\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-04599dc\" data-id=\"04599dc\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-514b077 elementor-widget elementor-widget-heading\" data-id=\"514b077\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.23.0 - 05-08-2024 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h1 class=\"elementor-heading-title elementor-size-large\">April 2022 the Health and Social Care Levy will Be Accompanied By An increase in National Insurance and Dividend tax<\/h1>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1bab0abf elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1bab0abf\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-74a07a24\" data-id=\"74a07a24\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-49139ebc elementor-widget elementor-widget-text-editor\" data-id=\"49139ebc\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.23.0 - 05-08-2024 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<!-- wp:paragraph -->\n<p>The government has implemented increases in National Insurance Contributions and Dividend Taxes to provide greater NHS and social care services.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The increases are part of the government&#8217;s plan to compensate for the effects of the coronavirus epidemic and close funding shortfalls that have been discovered. The price hikes will begin in April 2022.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong>Contributions to National Insurance are being increased.<\/strong><\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The government has implemented a new health and social care fee (the levy). Employees, employers who pay Class 1 (A and B), National Insurance Contributions (NICs), and self-employed persons who pay Class 4 NICs will all be subject to the tax. The levy will take effect in April 2022. Employed or self-employed people over the age of 65 will not be affected by the April 2022 amendments, but they will be required to pay the levy starting in April 2023.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><li>Employees and employers will pay more in National Insurance starting in April 2022, with 1.25 per cent added to existing rates.<\/li><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:list -->\n<ul><li>After HMRC&#8217;s systems are updated in April 2023, the 1.25 per cent levy will be separated and paid in addition to National Insurance, which will return to the 2021\/22 tax year levels.<\/li><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>In future years, the levy will apply to earnings\/profits above the respective National Insurance thresholds, as determined by the government and announced by the Chancellor of the Exchequer in the budget each year.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:list -->\n<ul><li>Existing reliefs and allowances from employers&#8217; secondary class 1 NICs, such as the \u00a34,000 employment allowance and reliefs for employers of apprentices, newly employed veterans, and new employees in freeports, will apply to the levy.<\/li><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:list -->\n<ul><li>The table below shows the changes from the 2021\/22 tax year to the 2023\/24 tax year. The tax year thresholds for 2021\/22 are provided solely for illustration purposes.<\/li><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p><strong>Increase in dividend taxation<\/strong><\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Dividend tax is levied on taxable dividend income that exceeds the annual personal tax-free allowance (\u00a312,570 in the 202\/22 tax year) and the dividend allowance (\u00a32,000 in the 2021\/22 tax year). Dividends earned in an Individual Savings Account (ISA) are not subject to dividend taxation.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>All dividend tax rates will rise by 1.25 per cent beginning in April 2022. This change will be implemented throughout the United Kingdom.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong>What does this entail for FinConcile customers?<\/strong><\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>FinConcile will continue to provide clients with the best tax-efficient advice and <a href=\"http:\/\/www.finconcile.com\/management-accounts.php\"><strong>outsourced accounting services LLC<\/strong><\/a> based on their circumstances. Many directors of limited companies receive only a small salary and will be unaffected by changes in national insurance rates if their compensation does not exceed a certain threshold.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The increase in dividend tax means that where earnings exceed the personal and dividend tax-free allowances, more tax will be paid. While the government has stated that these tax-free allowances will be frozen until 2026, the situation may change if the government is forced to raise taxes in the future.<\/p>\n<!-- \/wp:paragraph -->\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>April 2022 the Health and Social Care Levy will Be Accompanied By An increase in National Insurance and Dividend tax The government has implemented increases in<span class=\"excerpt-hellip\"> [\u2026]<\/span><\/p>\n","protected":false},"author":1,"featured_media":138,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[21],"tags":[22,13],"class_list":["post-137","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accounting-outsourcing","tag-outsourced-accounting-services-llc","tag-outsourced-accounting-services-uk"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/finconcile.com\/blogs\/wp-json\/wp\/v2\/posts\/137","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finconcile.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finconcile.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finconcile.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finconcile.com\/blogs\/wp-json\/wp\/v2\/comments?post=137"}],"version-history":[{"count":4,"href":"https:\/\/finconcile.com\/blogs\/wp-json\/wp\/v2\/posts\/137\/revisions"}],"predecessor-version":[{"id":427,"href":"https:\/\/finconcile.com\/blogs\/wp-json\/wp\/v2\/posts\/137\/revisions\/427"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finconcile.com\/blogs\/wp-json\/wp\/v2\/media\/138"}],"wp:attachment":[{"href":"https:\/\/finconcile.com\/blogs\/wp-json\/wp\/v2\/media?parent=137"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finconcile.com\/blogs\/wp-json\/wp\/v2\/categories?post=137"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finconcile.com\/blogs\/wp-json\/wp\/v2\/tags?post=137"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}