National Insurance increase reversed and health and social care levy cancelled

The chancellor has reversed the April increases to National Insurance contributions and cancelled the health and social care levy. The key changes are: 

• National Insurance contribution rates will be cut by 1.25 percentage points for employees employers and the self-employed in effect reversing the uplift introduced in April 2022 for the rest of the tax year. This cut will take effect from 6 November 2022 and it will cover class 1 (both employee and employer) class 1A class 1B and class 4 (self-employed) contributions; and
• the ring-fenced health and social care levy of 1.25% due to be introduced from April 2023 will not go ahead.

HMRC previously asked employers and software developers to include a temporary generic message on payslips for the tax year 2022-23 to explain the reason for the National Insurance uplift. It confirms this message will not be applicable from 6 November 2022 and...