National Insurance increase from April 2022
From 6 April 2022 to 5 April 2023 National Insurance contributions will increase by 1.25 percentage points. The increase in NICs rates are forecast to raise around £14 billion per year.* The increase is to be spent on the NHS, health and social care in the UK to aid recovery after the COVID 19 pandemic.
National Insurance is paid by employees and the self employed on their earnings, and by employers on the earnings of their employees. You will not be affected by these changes if you’re above State Pension age.
The current primary threshold for employees and the self employed is £9,568, which will rise to £9,880 in April 2022 (the upper earnings threshold will remain at £50,270).
The increase will apply to:
Class 1 (paid by employees) Employees earning more than £184 a week and under State Pension age - automatically deducted by your employer
Class 4 (paid by self-employed) Self-employed people earning profits of £9,569 or more a year
secondary Class 1, 1A and 1B (paid by employers) Employers pay these directly on their employee’s expenses or benefits
If your employee falls into one of the following categories and earns less than £50,270 (or £25,000 for Freeport employees) per year, existing reliefs will apply for:
apprentices under the age of 25
employees under the age of 21
armed forces veterans
employees in Freeports
You’ll pay less if:
you’re a married woman or widow with a valid ‘certificate of election’
you’re deferring National Insurance because you’ve got more than one job
*Institute For Fiscal Studies