Warning Staff about the NI Increase from 6 April
You’re no doubt aware of NI increases from 6 April 2022. 1.25% will be added to the current rates. This means employees’ standard NI rate will rise from 12% to 13.25%.
HMRC and some payroll experts think the increase will cause employees to ask for an explanation. HMRC has suggested employers use their payroll software’s messaging facility to add an explanatory note to payslips. They even provided wording for this; “1.25% uplift in NICs funds NHS, health & social care”.
As an employer, if you feel a payslip message might prevent staff taking up your time with questions about the NI increase, then it is a good idea to include it.
Depending on your payroll software, activating, and using the messaging differs. If you’re unsure how to use the messaging function check with your payroll software provider, which for some of you will be LHP Payroll using BrightPay software. BrightPay software has included this automatically on our LHP payslips in the top right hand corner so if this is you, no need to worry.
Because of changes announced in the Spring Statement on 23 March, the full effect of the increase in NI rates will apply only for salary etc. paid before 6 July 2022. Thereafter the increase will be mitigated by a change to the NI primary threshold. The broad effect of this is that from 6 July only employees earning at a rate exceeding £41,575 per annum will see an increase in their NI bill.
For help with your payroll including the messaging of NI increases in your BrightPay software, contact our team on Let’s Talk.