National insurance change for the November Payroll as the Health and Social Care Levy is rescinded

On 22nd September 2022 the then Chancellor, Kwasi Kwarteng gave a fiscal statement to parliament announcing a range of tax cuts and an in-year reduction to the National insurance rates. He also confirmed the cancellation of the Health and Social care Levy that was due to come into effect from April 2023 as a separate tax.

Whilst several of the tax cuts included in the September announcement have since been rescinded in the mini budget, by the new chancellor Jeremy Hunt, the reduction in National insurance has taken effect from November 6^th 2022.

Therefore, in the November payroll employees and employers will notice a reduction of 1.25% in their national insurance contributions.

Below is a quick summary of the changes to the National Insurance contributions

• National Insurance contributions rates have been cut by 1.25% 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
• The cut in National insurance rate effects Class 1, (both employee and employer), Class 1A, Class 1B and Class 4 (self-employed) National Insurance contributions
• The Health and Social Care Levy of 1.25% due to be introduced from April 2023 will not go ahead
• The temporary generic message on payslips for the tax year (2022 to 2023) explaining the National Insurance contributions uplift will also be removed from November 2022.