Recruitment sector: Have you considered the impact of the Health and Social Care Levy?

The NIC increase from April 2022 and the subsequent introduction of the Health and Social Care Levy will have a direct impact on employees and employers.

What is the impact for the recruitment sector?

Recruitment businesses need to factor in the increase in costs that will add 1.25 per cent to both the employer and employee NIC rate from April 2022. 

Additionally, fee payers, including agencies, making payments to deemed employees under the Off-payroll Worker Legislation will also be subject to the additional charge. 

Recruitment businesses should assess the impact of the change on new and existing arrangements that will continue beyond 5 April 2022. More generally, employers should consider the use of tax efficient reward and benefit structures.

For further guidance visit:

Preparing for the Health and Social Care Levy – tax efficient benefit provision | RSM UK

For more information, please get in touch with David Williams-Richardson, or your usual RSM contact.