Certain NICs are set to rise by 1.25% from April 2022.

The increase will apply to Class 1 NICs currently paid by employees via PAYE and to Class 4 NICs currently paid by the self-employed via their Self Assessment tax returns.

An important note however is that, unlike current contributions, the 1.25% levy will also apply to those over State Pension age who are currently exempt from traditional National Insurance payments and will kick in for earnings over £9,568.

This will mean for a salary of £24,000 there will be an additional liability of approximately £180 per year. For higher earners at around £67,000 their payments will increase by £715.

Dividends –   to avoid the circumvention of this increase, dividend tax payable on dividends over the annual allowance of £2,000 will also be subject to an additional 1.25%, taking the total basic dividend tax rate to 8.75%.

The Government say funds raised via this levy will be used to help fund the NHS and clear the backlogs that have developed.