National Insurance Contributions Changes

NI Card PictureFor Employees

From 6 July 2022, as an employee you will be able to earn more before you start paying National Insurance. This means you may pay less tax, after accounting for the recent Health and Social Care Levy.

You can use this tool to get an estimate if you’re employed and paid the same amount monthly, by your employer through the PAYE system.

Click here to start

 

For Employers

The Primary threshold from 6 July 2022 to 5 April 2023 will be £242 per week and £1,048 per month, equivalent to £12,570 per year (increased from £9,880 per year).

PAYE tax and Class 1 National Insurance contributions

You normally operate PAYE as part of your payroll so HMRC can collect Income Tax and National Insurance from your employees.

Your payroll software will work out how much tax and National Insurance to deduct from your employees’ pay.

Tax thresholds, rates and codes

The amount of Income Tax you deduct from your employees depends on their tax code and how much of their taxable income is above their Personal Allowance.

England and Northern Ireland

PAYE tax rates and thresholds 2022 to 2023
Employee personal allowance £242 per week
£1,048 per month
£12,570 per year

Tax and National Insurance Thresholds 2015/16

 

BANDS OF TAXABLE INCOME AND CORRESPONDING TAX RATES
2014/15 2015/16
Basic Rate 20% 20%
Higher Rate 40% 40%
Basic Rate Band £0 – £31,865 £0 – £31,865
Higher Rate Band £31,866 – £150,000 £31,866 – £150,000
Personal Allowance £10,000 £10,600
NATIONAL INSURANCE CONTRIBUTION THRESHOLDS
Weekly Lower Earnings Limit(Below which earnings do not accrue entitlement to SSP, SMP, and SPP) £111 £112
Weekly Primary Threshold £153 £155
Weekly Secondary Threshold £153 £156
Weekly Upper Earnings Limit £805 £815

 

NATIONAL INSURANCE RATES
Employee (Primary) Employer (secondary)
Weekly earnings Ni Rate (%) Weekly earnings Ni Rate (%)
Below £112 (LEL) 0 Below £156 (ST) 0
£112 -£155 (PT) 0 Above £156 (ST) 13.8
£155 – £815 (UEL) 12