How Will The New Health & Social Care Levy Impact Golf Clubs?

Accountancy Matters, the outsourcing accounting specialists for golf clubs, is gearing up for the new Health and Social Care Levy, to be temporarily applied to National Insurance Contributions from April. The company, who offer both full outsourcing of club accounts as well as just payroll, celebrated their 30th golf club client recently.

The new levy was announced in the last budget in an attempt to raise £36 billion over the next 3 years to help fix the long-standing adult social care crisis. It will initially take the form of a 1.25% increase to both the main and additional rates of National Insurance. The increase will also impact dividends.

Speaking of the new levy, Graham Johnson, Head of Finance at Accountancy Matters, comments:

“In the first instance the levy will be applied to National Insurance Contributions for both the employee and the employer, however, from April 2023 it will appear as a separate item on payslips of employees. The immediate concern for golf clubs, beyond cash flow, relate to ensuring payroll software is configured in time for the changes.”

As a third additional type of tax, significant changes to how payroll is handled, and the software used, will need to be considered carefully before it’s roll-out. It’s a problem likely to impact older desktop-based software, however, thanks to Accountancy Matters cloud-based solutions it’s something they can take in their stride.

Graham continues:

“The levy also effectively means employees will see a 1.25% cut in their take-home pay. That’s something that golf clubs should be planning for now so they can mitigate the impact, specifically by potentially changing their pay review dates.”

Accountancy Matters are offering a free initial telephone consultation with golf clubs to help them plan for the changes – click here to book your call >>

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