HMRC requests employers, where appropriate, add a message to payslips explaining the increased National Insurance contribution from April 2022*.
The message should read, "1.25% uplift in NICs funds NHS, health & social care."
This message is for the payslips of employees who have to pay the increased contribution between 6 April 2022 and 5 April 2023. This is so that they understand what it’s helping to fund.
From April 2023, you will need to report the levy as a new item through your payroll. You will need to show it on payslips as a separate 1.25% levy for employees who have to pay it.
HMRC has also contacted payroll software providers to request that they include this messaging in their software and wider support models, but realise some employers will need to make the change directly.
*As background to this request, on 7 September 2021, the government announced a new 1.25% Health and Social Care Levy to fund investment in the NHS, health and social care. The Levy is effectively introduced from April 2022 when National Insurance contributions for employees under State Pension age, self-employed people and employers will increase by 1.25 percentage points and be added to the existing NHS funding allocation.
From April 2023, the Levy will be formally separated from National Insurance contributions and apply to the earnings of individuals working above State Pension age. National Insurance contribution rates will then return to 2021 to 2022 levels, and receipts from the Levy will go directly for spending on health and social care.
For more information regarding the new Levy, please visit – https://www.gov.uk/guidance/prepare-for-the-health-and-social-care-levy#if-youre-an-employer