19-11-2021

This week HMRC sent out the following to Payroll Software developers and Payroll Departments.

You may be aware that on 7 September 2021, the government announced a new 1.25% Health and Social Care Levy to fund investment in the NHS and social care. The Levy will be effectively introduced from April 2022 when National Insurance Contributions (NICs) for working age employees, self-employed people and employers will increase by 1.25% and be added to the existing NHS allocation. From April 2023, the Levy will be formally separated from NICs and also apply to the earnings of individuals working above State Pension age and National Insurance Contribution rates will return to 2021-22 levels.

To ensure taxpayers understand that their increased contribution is helping fund public services, we are asking payroll software developers, where possible, to put a message on payslip templates explaining what these funds will be used for. The message applies to all payslips for the Tax year 2022-23 and should read “1.25% uplift in NICs funds NHS, health & social care”.

If you are unable to update your payslip templates directly, but your software allows employers to add free format messages to payslips themselves, please include the following guidance in your support models:

On 7 September 2021 the government announced a new 1.25% Health and Social Care Levy to fund investment in the NHS and social care. The Levy will be effectively introduced from April 2022 when National Insurance Contributions (NICs) for working age employees, self-employed people and employers will increase by 1.25% and be added to the existing NHS allocation. From April 2023, the Levy will be formally separated from NICs and also apply to the earnings of individuals working above State Pension age and National Insurance Contribution rates will return to 2021-22 levels.

To ensure taxpayers understand that their increased contribution is helping fund public services, we are asking employers and payroll agents, where possible, to put a message on payslip templates explaining what these funds will be used for. The message applies to all payslips for the Tax year 2022-23 and should read “1.25% uplift in NICs funds NHS, health & social care”.

Where appropriate, please also include guidance to your users on how to include a free format payslip message in your software.

Please note that our HMRC Employer Bulletin published on 8 December 2021 will reference the request for employers to include this message in their employees’ payslips from April 2022 and advise that payroll software developers have also been informed. To reduce possible contact, you may want to let your users know your plans as soon as possible.


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