Do you need to change your pay-slips to reference the increase in NI?

National Insurance contributions for employers and employees will rise by1.25% from Wednesday 6 April 2022. The increase will fund health and social care and will be replaced in April 2023 by a separate health and social care levy. NIC rates will revert to current levels at that point. 

The government has said that it wants to remind employees where the additional money is going and has asked employers to include the following message on all relevant pay-slips between 6 April 2022 and 5 April 2023:  

“1.25% uplift in NICs funds NHS, health & social care.”

Do you have to include this information on pay-slips?

You are not under a legal duty to amend your pay-slips to include this information. HMRC in its most recent bulletin has made it clear that it is making a request rather than issuing a demand. 

It is, however, very keen for employers and payroll providers to comply. It has contacted payroll software providers to request that they include this messaging in their software and wider support models and has said that it will remind employers of this request shortly via a separate email. 

Is the uplift payable by all staff?

No. Apprentices under the age of 25 and employees under the age of 21 don't have to pay the levy. Nor do employees of freeports or armed forces veterans. Therefore, this information should not be added to their pay-slips. The government has set out advice here.

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