National Insurance rising to 13.25% - how much more will you have to pay to HMRC in 2022?
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News that National Insurance (NI) contributions will rise for millions of Britons in April has angered campaigners who say it should be scrapped as taxpayers are already struggling to make ends meet in what has been called “the year of the squeeze”. What’s more, people who have reached state pension age will be forced to fork out for the levy from next year.
Government plans to increase NI contributions to 13.25 percent in April this year look set to still go ahead, news which has angered campaigners including the Taxpayer’s Alliance.
Commentators are furious that the proposals have not been shelved with millions of households already struggling and energy bills set to soar further.
They are pressuring MPs to scrap their pay rise for another year, currently they receive £81,932 per year, which could increase by £2,000 to £84,000.
John O'Connell, Chief Executive of the Taxpayers' Alliance said: "Now is not the time for MPs to get a pay rise."
READ MORE: DWP warning: Thousands of people with disabilities and long-term health conditions missing out on PIP.
How much will National Insurance rise from April 2022?
The new rate of 13.25 percent will apply to both employed and self employed Britons.
In real terms it means that an employee earning £20,000 a year will have to fork out an extra £130.
People on a £50,000 salary will have to find an additional £505. Individuals earning £9,564 or less a year, won’t have to pay the hike.
He continued: “The State Pension is half the minimum wage so needs to be increased by 10 percent above inflation for 10 years to match the minimum wage.
“We have the worst pension provision in Europe even though we pay into it for 50 years.”
Another reader, WilliamR2 said: “I worked for 49 years paying national insurance and had the benefit of private health care for a number of years as well as paying maximum NI and my employer paying unlimited NI contributions on my behalf.
“My employment subsidised my health care on which I was taxed. Now I feel that I am being robbed by them charging me more national insurance.”