National Insurance rates are set to rise by 1.25% points from April the 6th of 2022, as part of the government’s plan to introduce a health and social care levy where working people contribute to fund the NHS and the social care crisis.
April 2023 will be the point where the levy is paid by those who are above state pension age, but still work.
This tax year, you could earn £12,570 without paying income tax. If you earn over £12,570, you will start paying 20% tax on your income.
Some income is tax-free, the current tax year is from 6th April 2021 to 5th April 2022 and the new tax year is beginning from 6th April 2022, so make sure you know if anything has changed.
Income Tax rates and bands:
|Band||Taxable income||Tax rate|
|Personal Allowance||Up to £12,570||0%|
|Basic rate||£12,571 to £50,270||20%|
|Higher rate||£50,271 to £150,000||40%|
|Additional rate||over £150,000||45%|