EMPLOYMENT
National Insurance Contributions (NICs) A similar principle to that outlined above for income tax thresholds will be followed in respect of many of the NICs thresholds, namely that they are frozen at the limits for the preceding year and will remain at those levels until 2028. Full details are laid out at the end of this publication. However, the government will uprate the Class 2 and Class 3 NICs rates for 2023/24 to £3.45 per week and £17.45 respectively.National Living Wage (NLW) and National Minimum Wage (NMW) The government will increase the hourly NLW and NMW from 1 April 2023 as follows: • £10.42 for those 23 years old and over • £10.18 for 21-22 year olds • £7.49 for 18-20 year olds • £5.28 for 16-17 year olds • £5.28 apprentice rate for apprentices under 19, and those 19 and over in their first year of apprenticeship. Comment This represents an increase of over £1,600 to the annual earnings of a full-time worker on the NLW and is expected to benefit over two million workers.
Taxable benefits for company cars for 2023/24 The rates of tax for company cars remain frozen until 2024/25. Future car benefit rates have been announced for 2025/26 to 2027/28: • For 2025/26, the rates for emissions under 75gm/km increase by 1%. • For 2026/27, the rates for emissions under 75gm/km increase by a further 1%. • For 2027/28, the rates for emissions under 75gm/km increase by a further 1%.
The charge for electric cars will rise from 2% to 5% over that period. For cars with emissions of 75gm/km and above, there will be a 1% rise in 2025/26 only, subject to a maximum of 37%.
Employment
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