NATIONAL INSURANCE CONTRIBUTIONS (INCREASE OF THRESHOLDS)
In his Spring Statement on 23 March 2022, the Chancellor Rishi Sunak announced an increase to the annual National Insurance thresholds for employees, and for the self-employed – that is, the point at which individuals start to pay the main rate of National Insurance contributions (NICs) on their earnings, or their profits.
The annual National Insurance Primary Threshold and Lower Profits Limit, for employees and the self-employed respectively, will increase from £9,880 to £12,570 from July 2022. This increase will benefit almost 30 million people, with a typical employee saving over £330 in the year from July. Around 70% of NICs payers will pay less NICs, even after accounting for the introduction of the Health and Social Care Levy. Around 2.2 million people will be taken out of paying Class 1 and Class 4 NICs and the Health and Social Care Levy entirely, on top of the 6.1 million who already do not pay NICs.