The government have introduced some changes to National Insurance and tax on dividend earned to help fund health and social care costs.
National Insurance contributions of employed and self employed to rise by 1.25% from 1 April 2022.
Employers will also pay extra national insurance contributions for their staff.
At the same time tax rates on dividends will also rise by 1.25% from April 2022.
From April 2023 this increase will become the health and social care levy.
For those individuals earning £20,000 a year this will mean an extra £130 in tax, where as an individual earning £100,000 will pay an extra £1,130 per year!
The government will use these funds will be ring fenced for use by the NHS.
The new legislation is sure to have an adverse effect on small business owners and their employees. For more information or to get a quote, please contact us today.
KALA ATKINSON ARE A FIRM OF CHARTERED ACCOUNTANTS BASED IN EAST LONDON.
We have over 30 years experience in helping individuals and small businesses navigate their compliance whilst providing the business advice and the necessary financial tools to grow.
For more information on how we can help you file your tax return contact us today.