People's paypackets are already being emptied faster than ever with the rising cost of living, but they will have even less to spend when a tax hike is due to come into force next month. National Insurance is planned to rise by 1.25 percentage points in April to tackle the Covid-induced NHS backlog and reform social care.
Employees, employers and the self-employed will all pay 1.25p more per pound in National Insurance (NI) from April 2022. The increase will be rebranded as the Health and Social Care Levy from 2023.
The increase, coming on top of rising food and petrol prices, not to mention a steep rise in energy costs, will see the average worker will pay an extra £255 a year in taxes. An employee on a £20,000 a year salary will pay an extra £89, MirrorOnline reports.
