As an employer you should assess how this is likely to affect net earnings of employees.
It may be worthwhile considering other forms of renumeration such as salary sacrifice or other benefits such as bikes for work or childcare.
Tax Year | Employers Class 1 NIC | Employees Class 1 NIC | Self-employed Class 4 NIC |
Current year 2021/22 | 13.8% | 12% (between £9,568 and £50,270 the NIC Upper Earnings Limit) and 2% (above that limit) | 9% on profits between £9,568 and £50,270 and 2% payable on profits above £50,270 |
2022/23 | 15.05% | 13.25% (between £9,568 and £50,270 NIC Upper Earnings Limit) and 3.25% (above that limit) | 10.25% on profits between £9,568 and £50,270 and 3.25% payable on profits above £50,270 |
Effective Increase in % | 8.31% | 9.43% > Combined = 17.74% | 12.2% |
Standard Operating Procedure for internal use by Avar Team.
Standard System and Procedures for external use eg. (clients).
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