National Insurance contributions will increase by 1.25 percent from April 2022, leaving all workers under the State Pension age to part with even more of their monthly pay-check. According to the Government, the tax hike will see a 10 percent increase in NICs per month, yet not every region will end up paying the same. Taxpayers across the UK are already paying different amounts compared to their neighbouring regions – but which hotspots pay the most? How will this change?
From April 6, 2022, National Insurance contributions will increase by 1.25 percentage points, according to Gov.uk.
The rise comes as part of the Government’s strategy to tackle ongoing issues with the UK’s health and social care system.
Writing for the Sunday Times, Prime Minister Boris Johnson and Chancellor of the Exchequer, Rishi Sunak said: “We must clear the Covid backlogs, with our plan for health and social care – and now is the time to stick to that plan.
“We must go ahead with the health and care levy. It is the right plan.”
According to the ONS statistics published in November 2021, the Government received a total of £145 billion in National Insurance contributions – but how much did your region contribute?
READ MORE: ‘Pay up!’ Man, 85, furious as his state pension is ‘frozen’ at £70
Which UK regions pay the most in National Insurance?
Data gathered by legal experts at Wright Hassall have revealed the NICs of different regions, from the East of England to Northern Ireland.
Robert Lee, Corporate Partner from Wright Hassall said: “When looking at the current state of taxes across the UK, you could argue that the British taxpayer does not get value for their money.
“The simple reason being that the revenue and amount each region contributes towards taxes per person isn’t equivalent or anywhere near the expenditure (amount spent) on each region per person.”
Unsurprisingly, London topped the chart as the region that contributed the highest percentage of its earnings in National Insurance, but the other results might surprise you.
Across the UK, the tax payable per person is a lot higher in the south, though it is the East of England which pays the largest proportion of National Insurance revenue.
At 18.91 percent, areas in the East including Bedfordshire, Cambridgeshire, Essex, Hertfordshire, Norfolk and Suffolk, will certainly pay the price when the increased rate comes into effect.
At the other end of the spectrum, National Insurance revenue makes up just 15.61 percent of all taxes in Northern Ireland – the only part of the UK where it dips below 16 percent.
The second-lowest proportion of NI revenue is 16.18 percent for those living in Wales.
How much National Insurance will you pay from April 2022?
While the rate varies depending on your employment status and annual earnings, all employees who are paid by employees, employers and are self-employed will be hit by the tax hike, according to Gov.uk.
The tax kicks in on earnings in excess of £187 a week at a rate of 12 percent and then at two percent on all other earnings above £976 a week.
Based on the following annual salary brackets, you could expect to pay:
- An extra £130 a year (£10.80 per month) if you earn £20,000 or more
- An extra £255 a year (£21.25 per month) if you earn £30,000 or more
- An extra £505 a year (£45.80 per month) if you earn £50,000 or more
- An extra £880 a year (£73.33 per month) if you earn at least £80,000
- An extra £1,130 a year (£94.16 per month) if you earn £100,000
Those who earn less than £9,564 a year don’t have to pay National Insurance.