axis payroll November 2022 National Insurance Changes

Last week the government announced in-year reductions to National Insurance contribution rates and the cancellation of the Health and Social Care Levy as a separate tax.

As conveyed by HMRC in their email to employers, the key changes are:

1) National Insurance contribution (NIC) rates will be cut by 1.25 percentage points for employees, employers and the self-employed, effectively reversing the uplift introduced in April 2022 for the rest of the tax year. This cut will take effect from 6 November 2022 and it will cover Class 1 (both employee and employer), Class 1A , Class 1B and Class 4 (self-employed) NICs.

2) The ring-fenced Health and Social Care Levy of 1.25% due to be introduced from April 2023 will also not go ahead.

The temporary payslip message for tax year 2022 to 2023 explaining the NICs uplift is also to be removed from 6th November.

The required axis payroll software developments for these changes are in hand and we anticipate that a software update will be available for customers to download from Monday 24th October 2022.

axis payroll users will be contacted by email to confirm the availability of the software.