Health and Social Care Levy Act 2021

5 Transitional provision: temporary increase in rates of NICs payable to NHS

(1) This section makes transitional provision for the tax year 2022-23.

(2) Part 1 of SSCBA 1992 (contributions) is to have effect as if—

(a) in section 8(2) (calculation of primary Class 1 percentages)—

(i) in paragraph (a) (main primary percentage), for “12” there were substituted “13.25”, and

(ii) in paragraph (b) (additional primary percentage), for “2” there were substituted “3.25”,

(b) in section 9(2) (calculation of secondary Class 1 contributions: the secondary percentage), for “13.8” there were substituted “15.05”, and

(c) in section 15(3ZA) (calculation of Class 4 contributions)—

(i) in paragraph (a) (main Class 4 percentage), for “9” there were substituted “10.25”, and

(ii) in paragraph (b) (additional Class 4 percentage), for “2” there were substituted “3.25”.

(3) For the purposes of the application of sections 143(4) and 145(3) of SSAA 1992 (limit on power to alter contribution rates by reference to rates in preceding tax year) in relation to the tax year 2023-24, the modifications in subsection (2) are to be ignored.

(4) Part 1 of SSCB(NI)A 1992 (contributions: Northern Ireland) is to have effect as if—

(a) in section 8(2) (calculation of primary Class 1 percentages)—

(i) in paragraph (a) (main primary percentage), for “12” there were substituted “13.25”, and

(ii) in paragraph (b) (additional primary percentage), for “2” there were substituted “3.25”,

(b) in section 9(2) (calculation of secondary Class 1 contributions: the secondary percentage), for “13.8” there were substituted “15.05”, and

(c) in section 15(3ZA) (calculation of Class 4 contributions)—

(i) in paragraph (a) (main Class 4 percentage), for “9” there were substituted “10.25”, and

(ii) in paragraph (b) (additional Class 4 percentage), for “2” there were substituted “3.25”.

(5) Section 162(5) of SSAA 1992 (destination of national insurance contributions: meaning of “the appropriate national health service allocation”) is to have effect as if—

(a) in the opening words, for “50” there were substituted “69.23”,

(b) in paragraph (a) (primary Class 1 contributions), for “2.05” there were substituted “3.30”,

(c) in paragraph (b) (secondary Class 1 contributions), for “1.9” there were substituted “3.15”,

(d) in paragraph (c) (Class 1A contributions), for “1.9” there were substituted “3.15”,

(e) in paragraph (ca) (Class 1B contributions), for “1.9” there were substituted “3.15”, and

(f) in paragraph (f) (Class 4 contributions), for “2.15” there were substituted “3.4”.

(6) Section 142(5) of SSA(NI)A 1992 (destination of national insurance contributions: Northern Ireland) is to have effect as if—

(a) in the opening words, for “50” there were substituted “69.23”,

(b) in paragraph (a) (primary Class 1 contributions), for “2.05” there were substituted “3.30”,

(c) in paragraph (b) (secondary Class 1 contributions), for “1.9” there were substituted “3.15”,

(d) in paragraph (c) (Class 1A contributions), for “1.9” there were substituted “3.15”,

(e) in paragraph (ca) (Class 1B contributions), for “1.9” there were substituted “3.15”, and

(f) in paragraph (f) (Class 4 contributions), for “2.15” there were substituted “3.4”.