Since the announcement made on 7 September 2021 of the new Health and Social Care Levy which will see both employers and employees national insurance contributions increase by 1.25%, budgets are being revised across all types of businesses and we would advise Academy Trusts update theirs too for their 21/22 budgets.
Given that the most significant cost for an Academy Trust is wages, the employer’s element which is the cost to the Trust, may make quite a large difference.
To put this into perspective, if you have a teacher who is on a salary spine point of Max U3, currently earning £41,604, this would result in an additional cost of £410 per year. This is because in the current tax year, Trusts pay employers national insurance contributions for staff earning more than £8,840.
Your budgeting software should allow you to update rates from April 2022 and calculate this automatically for you but if you would like help with this, please do not hesitate to contact us.
All data and figures referred to in our news section are correct at the date of publishing and should not be relied upon as still current.
