National Insurance Rates Set for Reduction in November 2022

As the cost-of-living crisis continues to rock the United Kingdom and costs continue to rise, the

recent news from the UK Government in which Chancellor Kwasi Kwarteng confirmed that the

increase to employee National Insurance contributions that came into effect earlier this year will

now be reversed as of 6 th November 2022.

The previous rise in rates, which took the NI contributions figure of 12% up to 13.25% was

introduced to cover the cost of the Health and Social care levy.

Chancellor Kwarteng said: “Taxing our way to prosperity has never worked. To raise living standards for all, we need to be unapologetic about growing our economy. “Cutting tax is crucial to this. Whether businesses reinvest freed-up cash in new machinery, lower prices on shop floors or increased staff wages, the reversal of the levy will help them grow, whilst also allowing the British public to keep more of what they earn.”

Employer National Insurance is also set to fall back to its previous level, effective from 6th November

2022. The Class 1 employer NIC will also be reduced by 1.25% to 13.8%. In the case of NICs rates

which apply annually, there will be transitional arrangements to reduce the current rates.

You may want to consider outsourcing your payroll process to a third-party payroll provider like

Qualitas. From our offices in Glasgow and throughout the UK, we employ a team of professionally

trained and highly experienced payroll management experts focused on the execution of our core

business values and maintaining the highest quality relationships with our trusted clients. Our

specialist team also utilises their vast experience working within complex and technically challenging

large-scale employers and payrolls to successfully deliver innovative solutions to emerging and

constantly changing regulations.

For more information on how you could better manage your internal payroll function or utilise our white-label or partnered payroll for accountants service, visit www.qualitas-payroll.co.uk today.