Commentary on provisions of Act Section 2: Transitional NICs rates for tax year 2022-23 etc
Section 2 provides for transitional arrangements for the 2022-23 tax year to reverse the temporary increase in the rate of NICs. This measure applies to Great Britain and Northern Ireland.
	Section 2(1) ensures that the higher rates of Class 1 NICs, as set out in section 5 of the Health and Social Care Levy Act 2021, remain in place until 5 November 2022. At which point, those sections will no longer have effect and the 2021-22 tax year Class 1 NICs rates will apply from 6 November 2022.
	Section 2(2) amends the main rate of Class 4 NICs and the additional rate of Class 4 NICs for the 2022-23 tax year, as set out in Part 1 of the Social Security Contributions and Benefits Act 1992, to 9.73% and 2.73% respectively. Class 4 NICs are assessed on an annual basis, therefore a blended rate has been applied to ensure consistency and fairness with Class 1 NICs payers who have paid the increased NICs rate since April 2022. Further, this approach means that the self-employed do not need to apportion profits mid-way through the tax year. Section 2(3) ensures the changes to Class 4 NICs also apply in Northern Ireland.
	Section 2(4) provides for a Schedule to this Act that contains further transitional provisions and a power to make consequential provisions.