Employers asked to explain tax hike on payslips HMRC has asked businesses to print the reasoning behind the Government's National Insurance tax increase on workers' payslips, with firms asked to note that the 1.25% increase funds NHS, health and social care. Kitty Ussher of the Institute of Directors called the move an "odd initiative" that was clearly attempting to justify a "deeply unpopular and regressive tax on jobs". Craig Beaumont of the Federation of Small Businesses said it was not employers' job to explain or justify spending decisions, commenting: “Taking away people's pay rises during a cost-of-living crisis is bad enough, but then having the state instruct firms to write PR on payslips just adds insult to injury." A HMRC spokesperson said it was not mandatory for employers to include the message but added they had been "strongly encouraged" to do so.