National Insurance Class 1 Earnings Limits
following representation by the Office for Tax Simplification.
From April 2020 After another period of identical primary and secondary thresholds, 2020 saw a significant divergence between the two values. The primary (employee) threshold rose £17 to £183 a week whilst the secondary (employer) threshold rose by just £3 to £169 a week. In addition, the upper earnings thresholds and limit remains unchanged at £962 a week which significantly reduces the 12% contributions band. COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS The Employment Allowance rises to £4,000 but is restricted to employers with a total NICs bill of less than £100,000. From April 2021 As expected there have been minor changes only to NICs for the new year. Surprisingly the LEL has remained unchanged with minimal changes in the other thresholds. NATIONAL INSURANCE CLASS 1 EARNINGS LIMITS The tables on the following pages show the basic Not Contracted-out rates. Contracted-out rates are obtained by applying the rebates shown at the bottom of each page. The rebate is the difference between the Not Contracted-out and Contracted-out rates. Contracted out rebates were abolished, firstly on 6th April 2012 for contracted out defined contribution pensions schemes and then finally on 6th April 2016 for defined benefit schemes. Class 1 National Insurance Earnings Limits
From 1992/93
Lower Earnings Limit
Upper Earnings Limit
Weekly Monthly Annual No printing, copying or reproduction permitted. £ £ £ £ £ 54 234 2,808 405 1,755 56 243 2,912 420 1,820 57 247 2,964 430 1,864 58 252 3,016 440 1,907 61 265 3,172 455 1,972 62 269 3,224 465 2,015 64 278 3,328 485 2,102
Year
Weekly Monthly Annual
£
1992/1993
21,060
1993/1994
21,840
1994/1995
22,360
1995/1996
22,880
1996/1997
23,660
1997/1998
24,180
1998/1999
25,220
219
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