A new health and social care tax are about to be introduced. This will apply across the UK to pay for reforms to the care sector and NHS funding in England.
Boris Johnson the Prime Minister Of the UK said the tax will raise £12bn a year and is designed to tackle the health backlog caused due to the Covid pandemic and to bolster social care.
The tax will be collected as a 1.25 percentage point rise in National Insurance from April 2022. It will be paid by both employers and workers, and will then become a separate tax on earned income from 2023. It will be calculated in the same way as National Insurance and appearing on an employee’s payslip.
Income from share dividends – Earned by those who own shares in companies will also see a 1.25% tax rate hike.
The UK-wide tax will is focusing on funding health and social care in England. However, Scotland, Wales, and Northern Ireland will also get an additional £2.2bn. This is to be spent on their services.