National Insurance (Stealth TAX?)

Folks,

Just been reviewing my payslip for this month and was a bit confused to why, despite doing the same hours as a previous month, the payment to my bank would be lower

The difference is all in National insurance. This year I and colleagues have now been placed in Category "A" last we were in "D" which has now gone.

So, despite doing the same hours I am now £50 worse off, one colleague has paid £80 more this month!

Anyone else seen this?

Are you in a final salary pension scheme?

If so, most were "contracted out" (of the State Earnings Related Pension Scheme) - this carried a reduction of employee's National Insurance from 12% to 10.6%

This reduction has been scrapped from April 2016, meaning that all employees now pay 12% NI

That could be it, thanks Nigel.

You're right that it's a stealth tax. Accountants have viewed it as another portion of income tax for decades.