Social Care Reform and What It Means
Posted on 7th September 2021 at 15:00
Today the Prime Minister announced that social care reform is being planned for next year. In order to achieve this, from April 2022 there will be a 1.25% health and social care levy on all earned income. This applies to both National Insurance and the dividend tax rate. Boris Johnson says this will raise £36bn over three years to support and strengthen health and social care across the UK.
The funds raised through the levy will be invested into better screening equipment, designated surgical facilities, faster GP access to specialists, and new digital technology so that doctors can monitor patients in their homes.
The increase isn’t being applied to income tax because businesses don’t pay it, therefore the pressure would be placed entirely on the individual. Instead, the levy applies to individuals and businesses alike, as this way everyone contributes towards improving the nation’s health and social care sectors.
As an example, the rise will cost £255 a year for someone earning £30,000 and £505 a year for someone on £50,000.
We’re here to help
Want to know more about how to prepare your business for the health and social care levy? Call our Yorkshire office on 01482 235575, our London office on 0207 885 0605, or fill in the contact form below.
Tagged as: Tax
Share this post: