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Whilst several of the tax cuts included in the September announcement have since been rescinded in the mini budget, by the new chancellor Jeremy Hunt, the reduction in National insurance has taken effect from November 6th 2022.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