Major National Insurance changes have already kicked in, which are having widespread implications. The Government has hiked National Insurance by 1.25 percentage points from April 2022 onwards.
This rise, however, has not impacted those of state pension age and over, as at this point, Britons typically no longer need to pay National Insurance.
However, there is a major change just over the horizon which could have consequences for this age group.
From April 2023, the Government will be introducing a new Health and Social Care levy.
While National Insurance will return to its normal rate from this point, the extra tax will be collected through the new levy.
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The levy must also be paid by self-employed people who reached state pension age in the 2022/23 tax year who have profits more than the Lower Profit Limit.
However, they will also have to pay the higher NI rate from April 2022, and may have already got used to the higher tax burden.
Those who pay the new levy will see it as a separate line if they have a payslip.
The health and social care levy is said to be directed towards bolstering NHS and health and social care bodies across the country.
Chancellor of the Exchequer, Rishi Sunak, previously commented on the introduction of the levy.
He said: “This Government will not shy away from the difficult decisions we need to take to fix our social care system and slash NHS waiting times.
“The Health and Social Care Levy will fund a third more elective care, over 17 million extra diagnostic tests and a cap on the cost of care so people no longer live in fear of losing everything to pay for care.
“The British people deserve the best health care in the world and delivering that is our top priority.”
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