No images? Click here ![]() Executive briefing – September 2021UK tax changes – Health and Social Care levyEarlier this week, the UK government announced a major policy programme to enable significant funding increases for health and social care. In order to deliver those proposed increases, a new UK-wide 1.25% ‘Health and Social Care Levy’ will be introduced from April 2022. Although this is not directly an executive remuneration matter, it is a significant change in UK tax policy that is likely to have a material impact upon UK employers. Clearly, the impact of the change will vary considerably by business and low margin businesses with significant numbers of employees may be materially impacted. There are also some technical aspects of the changes that we think are worth considering. Overview The levy will initially be delivered via a temporary increase in National Insurance contributions (NICs) for 2022/23 tax year and then from April 2023 it will become a separate levy (see summary table below). ![]() FIT high-level observations
Introduction of the levy will be subject to UK parliamentary process which means that the final details may change. Moreover, a UK Budget is also scheduled at end of October so there may be further UK tax developments in the pipeline. We will continue to monitor these and provide updates. The above are high-level observations and if you would like to discuss any of them in more detail, please get in touch with your regular FIT contact. If you wish to discuss anything arising from this briefing, please ask your usual contact at FIT or call us on 020 7034 1111 or email us at Info@fit-rem.com. Rory Cray Darrell Hare Matt Higgins John Lee Sahul Patel Iain Scott Katharine Turner Matthew Ward This paper is intended to be a summary of key issues but is not comprehensive and does not constitute advice. No legal responsibility is accepted as a result of reliance on the contents of this paper. This email is confidential. If you are not the intended recipient, please delete the email and do not use it in any way. FIT Remuneration Consultants LLP (FIT) does not accept or assume responsibility for any use of or reliance on this email by anyone, other than the intended addressee to the extent agreed in the relevant contract for the matter to which this email relates (if any). Consistent with data protection regulations, if you would like to review our records relating to your contact details or to request their removal from our systems, please contact us at info@fit-rem.com. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that the onward transmission, opening or use of this message and any attachments will not adversely affect its systems or data. No responsibility is accepted by FIT in this regard. FIT is a limited liability partnership registered in England under registered number OC364396, with its registered address at 1 Duke Street, London, W1U 3EA. |