National Insurance Contributions and Tax on Dividends to Increase

23rd September 2021 | News

The UK government has announced an extra tax to fund health and social care and to help the NHS recover from the COVID-19 Pandemic.

Employees, employers, and the self-employed will all pay 1.25p more in the pound for National Insurance (NI) from April 2022.

NI will revert to the usual rate from April 2023 and the extra tax will be collected as a Health and Social Care Levy.

Boris Johnson also plans to raise taxes on company dividend payments.

As with the NI increase, taxes on dividends will rise by 1.25% in order to fund health and social care. Under the Prime Minister’s plans, investors can earn up to £2,000 in dividends before they are liable to be taxed.

However, the dividend tax rate of 7.5% paid by basic rate taxpayers in the current financial year will increase to 8.75% from 2022-23 onwards. The levy for higher rate taxpayers will rise to 33.75%, while additional rate taxpayers — those earning more than £150,000 a year in England — will see an increase of 39.35%.

As always, if you would like any further information regarding the tax increases, please speak with your usual Williamson & Croft contact. Otherwise, feel free to contact our offices on 0161 399 0121 / 0151 303 3112 or by email

Williamson & Croft is a market leading accountancy, advisory and tax firm with particular specialisms in property, construction, retail, digital and creative, technology and professional services.

Global Association


Employment Allowance increased as of April 2022

In the Spring Statement in March, Chancellor Rishi Sunak introduced several new measures to help the public combat the current cost-of-living crisis. One of these measures was the boost to Employment Allowance for UK families and businesses. What is Employment...

Trust Registration – Registrable Express Trusts

UK express trusts and some non-UK trusts in existence on or after 6th October 2020 must be registered with the UK Trust Registration Service (TRS) by 1st September 2022.  On 6th October 2020, as part of the UK’s implementation of the Fifth Money Laundering Directive...


0161 399 0121

York House, 20 York Street, Manchester, M2 3BB

0151 303 3112

Avenue HQ Liverpool, 17 Mann Island, Liverpool L3 1BP

Contact us

© Copyright 2020 Williamson & Croft LLP - Registered No OC402211