Commentary on provisions of Act Section 5: Transitional provision: temporary increase in rates of NICs payable to NHS
Section 5 sets out the transitional arrangements for this measure. Section 5(1) specifies that these arrangements will only apply for the 2022-2023 tax year.
	Section 5(2) modifies the percentage rates of National Insurance contributions for the 2022-23 tax year set out in Part 1 of the SSCBA 1992 so that, for the 2022-23 tax year:
the main rate of Primary Class 1 will be 13.25% (increased from 12% in 2021-22),
the additional rate of Primary Class 1 will be 3.25% (increased from 2% in 2021-22),
Secondary Class 1 will be 15.05% (increased from 13.8% in 2021-22),
the main rate of Class 4 will be 10.25% (increased from 9% in 2021-22),
the additional rate of Class 4 will be 3.25% (increased from 2% in 2021-22).
	Section 5(3) secures that NICs rates cannot subsequently be raised in tax year 2023-24 by reference to the higher temporary rates in 2022-23.
	Section 5(4) replicates the modifications made by Section 5(2) in Part 1 of SSCB(NI)A 1992, so that the temporary rate modifications also apply to Northern Ireland.
	Section 5(5) modifies section 162(5) of SSAA 1992. It stipulates that, for the 2022-23 tax year, the amount of contributions that are allocated to the NHS are increased as set out below. This ensures that all of the proceeds raised from the temporary rate increase set out at Section 5(2) and (4) are directed to the NHS.
69.23% increased from 50% of the proceeds from the additional rate of Class 1 and 4 will be allocated to the NHS
3.30% increased from 2.05% of earnings in respect of the main rate of Primary Class 1 NICs will be allocated to the NHS
3.15% increased from 1.9% of earnings in respect of Secondary Class 1 NICs will be allocated to the NHS
3.15% increased from 1.9% of earnings (and other forms of income) in respect of the Class 1A NICs will be allocated to the NHS
3.15% increased from 1.9% of earnings (and other forms of income) in respect of the Class 1B NICs will be allocated to the NHS
3.4% increased from 2.15% of profits in respective of Class 4 NICs will be allocated to the NHS.
	Section 5(6) replicates the provisions of Section 5(5) in respect of section 142(5) of SSA(NI)A 1992, so that the further allocation of contributions to the NHS also applies in Northern Ireland.