National Insurance Changes for 2021/22: Your essential guide
In this blog, we outline the key personal tax changes that you need to know about for the tax year 2021/22. Look out for our other blogs detailing the changes to other types of tax this tax year.
The Class 1 National Insurance lower earnings limit remains at £120 per week. However, the Primary Threshold is increased to £184 per week and the Secondary Threshold to £170 per week, while the Upper Earnings Limit is increased to £967 per week. Both the Upper Secondary Threshold for under 21s and Apprentices also rise to £967 per week.
The Main Primary Rate, payable by employees on earnings between the primary threshold and the upper earnings limit, remains at 12%, while the Additional Primary Rate, payable on earnings in excess of the upper earnings limit, remains at 2%. The Secondary Rate, payable by employers on earnings in excess of the relevant secondary threshold, remains at 13.8%.
The Employment Allowance remains unchanged at £4,000 for 2021/22. The Class 1A rate and Class 1B rate also remain at 13.8%.
Class 2 National Insurance contributions payable by the self-employed remain at £3.05 per week. However, the Small Profits Threshold is increased to £6,515 for 2021/22.
The rate of voluntary Class 3 National Insurance contributions is increased by 10p per week to £15.40 per week for 2021/22.
The lower profits limit for Class 4 National Insurance purposes is increased to £9,568 for 2021/22, while the upper profits limit is increased to £50,270 for 2021/22. The main Class 4 rate, payable on profits between the lower and upper profits limits, remains at 9%, and the additional Class 4 rate, payable on profits in excess of the upper profits limit, remains unchanged at 2%.
The upper earnings limit and upper profits limit will remain at their 2021/22 levels and aligned with the higher rate threshold of £50,270 until April 2026.