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It was announced on 7th September 2021 that National Insurance Contributions (NICs) will increase by 1.25% for 2022/2023.
These increases are going ahead from 6th April 2022. However, the impact for many will be significantly reduced because the threshold before NICs become payable will now be aligned with the Income Tax Personal Allowance from 6th July 2022.
Employee Lower Earnings Limit
If staff earn between the Lower Earning Limit and the Primary Threshold they could get National Insurance ‘credits’.
| 2021/22 Tax Year | 2022/23 Tax Year |
| £6,240 | £6,396 |
| 0% | 0% |
Employee Primary Threshold
If staff earn between the Primary Threshold and the Upper Earnings Limit (£50,270), then they will pay the standard rate of National Insurance.
| 2021/22 Tax Year |
2022/23 Tax Year (April-June) |
2022/23 Tax Year (July onwards) |
| £9,568 | £9,880 | £12,570 |
| 12% | 13.25% | 13.25% |
Employer Secondary Threshold
If staff earn over the Secondary Earnings Threshold then you, the employer, will pay the standard rate of employer’s National Insurance on these earnings
| 2021/22 Tax Year | 2022/23 Tax Year |
| £8,840 | £9,100 |
| 13.80% | 15.05% |
Important Information Regarding Thresholds and Pension Calculations
From April 2022, the Automatic Enrolment Lower Threshold and the National Insurance ‘Lower Earnings Limit’ values will be different, whereas previously these values have been the same.
This is the first major change since 2012 and may affect your pension calculations.
The rules regarding enrolment into a pension have not changed.
The Automatic Enrolment Lower Thresholds from April 2022:
- Weekly: £120
- Monthly: £520
- Annual: £6,240
The National Insurance bandings:
- Weekly: £123
- Monthly: £533
- Annual: £6,396
How does this affect you?
If your Pension Scheme uses Automatic Enrolment Thresholds, please advise your Workplace Pension Financial Adviser or your Pension Provider.
Every care has been taken to ensure that this information is correct and in accordance with our understanding of the law and HM Revenue & Customs practice, which may change. However, independent confirmation should be obtained before acting or refraining from acting in reliance upon the information given. This information is based on announcements made in the March 2022 Spring Statement which may change before becoming law.
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