From April 2022 National Insurance rates will increase by 1.25%, for one year only, for employees, employers and self-employed. It will affect Class 1A, 1B (employees and employers) and Class 4 (self-employed). Excluding those of pension age.
From April 2023 National Insurance rates will revert to their current rates. But, a new ringfenced Health and Social Care Levey of 1.25% will be introduced covering those mentioned above and in addition those over pension age that are still in work (Class 1A and 1B) or self-employed (Class 4).
In addition, from April 2022 there will be an increase of 1.25% on the rate of income tax on dividends. The current tax-free band of £2,000 will still be available and dividends received through ISAs will remain tax free.