National Insurance Threshold Raised

From 6th July 2022 the National Insurance threshold has been raised from £9880 to £12,570, bringing it in line with the personal allowance for income tax.

In his Spring Statement in March of 2022, then Chancellor Rishi Sunak announced changes to National Insurance. The first change took place in April when NI contributions were raised from 12% to 13.25%. The second change effective this week means that can earn more before you start paying National Insurance. It means you no longer pay national insurance or income tax if you earn below £12,570 a year.

The Institute for Fiscal Studies reported that the changes mean those earning less than around £35,000 a year will see a fall in their overall NICs bill in 2022/23 compared to 2021/22. But, those earning more than £35,000 will pay more.