Pensioners may have to pay more for National Insurance as part of a new levy being introduced by the UK government, Brinkwire reports.
When an individual reaches the age of state pension they would usually no longer be required to pay National Insurance contributions. However, for some people the rules are about to change, resulting in a significant tax increase for older Brits.
From April 2022 onwards, the UK government reportedly plans to raise National Insurance.
As a result, employees, employers, and the self-employed will all pay 1.25 percentage points more in National Insurance contributions.
Then from April 2023, National Insurance will revert to its current rate and the additional tax will be collected through a new Health and Social Care Levy.
This levy is something that older Brits should look into, as it may be imposed on them.
This levy will be paid by state pensioners who are still working.
Working adults - including those over the age of state pension, in a first - will pay the levy, according to a spokesperson for Boris Johnson earlier this year.
The levy will be separate from National Insurance from April 2023 and it will be paid by working pensioners.
For those who have to pay it, it will appear as a separate line on their pay stub.
The levy is said to be intended to improve services at the NHS and other health and social care organisations across the UK.
Rebecca O’Connor - Head of Pensions and Savings at interactive investor - recently explained the implications of the levy. “From April 2022, the new Health and Social Care levy will add 1.25 percent to current National Insurance contributions for all workers,” she said.
“These are significant sums of money, and households will feel the pinch; it won’t be as simple as absorbing the increases.
“With household inflation and other pressures, people may find they need to budget more carefully to pay their taxes.
“When tax returns are due at the end of January, the first tax payment pay point of the year will be.
“Those who pay tax through PAYE should compare payslips, especially if they’ve had a raise, to see how much their tax bill has increased.”
Older Brits may be reassured to know that their property income, pension income, and savings are unaffected.
Source: Brinkwire
(Quote via original reporting)
Pensioners may have to pay more for National Insurance as part of a new levy being introduced by the UK government, Brinkwire reports.
When an individual reaches the age of state pension they would usually no longer be required to pay National Insurance contributions. However, for some people the rules are about to change, resulting in a significant tax increase for older Brits.
From April 2022 onwards, the UK government reportedly plans to raise National Insurance.
As a result, employees, employers, and the self-employed will all pay 1.25 percentage points more in National Insurance contributions.
Then from April 2023, National Insurance will revert to its current rate and the additional tax will be collected through a new Health and Social Care Levy.
This levy is something that older Brits should look into, as it may be imposed on them.
This levy will be paid by state pensioners who are still working.
Working adults - including those over the age of state pension, in a first - will pay the levy, according to a spokesperson for Boris Johnson earlier this year.
The levy will be separate from National Insurance from April 2023 and it will be paid by working pensioners.
For those who have to pay it, it will appear as a separate line on their pay stub.
The levy is said to be intended to improve services at the NHS and other health and social care organisations across the UK.
Rebecca O’Connor - Head of Pensions and Savings at interactive investor - recently explained the implications of the levy. “From April 2022, the new Health and Social Care levy will add 1.25 percent to current National Insurance contributions for all workers,” she said.
“These are significant sums of money, and households will feel the pinch; it won’t be as simple as absorbing the increases.
“With household inflation and other pressures, people may find they need to budget more carefully to pay their taxes.
“When tax returns are due at the end of January, the first tax payment pay point of the year will be.
“Those who pay tax through PAYE should compare payslips, especially if they’ve had a raise, to see how much their tax bill has increased.”
Older Brits may be reassured to know that their property income, pension income, and savings are unaffected.
Source: Brinkwire
(Quote via original reporting)