Announced as part of the Speech:
- Employers’ National Insurance contribution will increase by 1.2%.
- The Secondary Threshold will be reduced to £5,000 per annum.
- The Employment Allowance will be increased to £10,500.
In detail:
- The Lower Earnings Limit will be increased to £125 per week.
- The Employment Allowance qualifying criteria for employers with National Insurance contributions under £100,000 will be removed.
Thresholds
| Threshold/limit | Weekly | 2 Weekly | 4 Weekly | Monthly | Annual |
| Lower Earnings Limit (LEL) | £ 125 | £ 250 | £ 500 | £ 542 | £ 6,500 |
| Primary Threshold (PT) – directors | £ 242 | £ 484 | *£ 967 | £ 1,048 | £ 12,570 |
| Primary Threshold (PT) – non-directors | |||||
| Secondary Threshold (ST) | £ 96 | *£ 193 | *£ 385 | £ 417 | £ 5,000 |
| Freeports Upper Secondary Threshold (FUST) | £ 481 | £ 962 | £ 1,924 | £ 2,083 | £ 25,000 |
| Upper Secondary Threshold (UST) | £ 967 | £ 1,934 | *£ 3,867 | £ 4,189 | £ 50,270 |
| Apprentice Upper Secondary Threshold (AUST) | |||||
| Veterans Upper Secondary Threshold (VUST) | |||||
| Upper Earnings Limit (UEL) |
Rates
| Primary Contributions (employee) | Secondary Contributions (Employer) | ||||||||
| A/F/H/M/N/V | B/E/I | C/K/S | D/J/L/Z | X | A/B/C/J | H/M/V/Z | D/E/F/I/K/L/N/S | X | |
| Below LEL | Nil | N/A | |||||||
| LEL to PT | 0% | Nil | 0% | Nil | |||||
| PT to UEL / UST / AUST | 8% | 1.85% | 2% | ||||||
| Below ST | N/A | 0% | 0% | 0% | Nil | ||||
| ST to FUST | 15.0% | ||||||||
| FUST to UEL / UST / AUST / VUST | 15.0% | ||||||||
| Above UEL / UST / AUST / VUST | 2% | Nil | 2% | Nil | 15.0% | ||||
And for Mariner related National Insurance Contributions:
| Primary Contributions (employee) | Secondary Contributions (Employer) | |||||
| R/G/Y | T | W | Q/P | R/T/W/Q | G/Y/P | |
| Below LEL | Nil | N/A | ||||
| LEL to PT | 0% | Nil | 0% | |||
| PT to UEL / UST / AUST | 8% | 1.85% | 2% | |||
| Below ST | N/A | 0% | 0% | |||
| ST to FUST | 14.5% | |||||
| FUST to UEL / UST / AUST / VUST | ||||||
| Above UEL / UST / AUST / VUST | 2% | Nil | 2% | 14.5% | ||
What is different for directors?
There are two different director calculation types for National Insurance: Annual (the default standard) and alternate.
Annual require the operation of full year bandings to prevent directors from avoiding National Insurance contributions.
The alternate method allowed the operation of NI in the same way as employees except for the last pay period in a tax year the director is paid. At that point there is an obligation to recalculate using the annual method.