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National Insurance rates and thresholds from April 2022
21st January 2022
UPDATE 22 SEPTEMBER 2022 - NATIONAL INSURANCE RATES TO 5 APRIL 2023 REVISED AFTER MINI-BUDGET
For the latest tables covering National Insurance rates for the whole period from 6 April 2022 to 5 April 2023 following September's Mini-Budget, see our article - National Insurance rates and thresholds to 5 April 2023.
The Health & Social Care Levy was originally announced in September 2021 before the Budget and will result in a temporary increase in the rate of NICs from April 2022 by 1.25% for both employers and employees.
From 2023/24, NIC rates will revert to their previous levels - so far as we have been told - to be replaced by the 1.25% Health and Social Care Levy. This will apply to employers, employees and the self-employed (including those above State pension age).
HMRC has confirmed the 2022/23 NIC rates in an email to software developers.
The lower NIC thresholds and limits will rise by 3.1%, in line with CPI inflation to September 2021 (although inflation reached 5.4% in December 2021).
The upper earnings limit, upper secondary thresholds and upper profits limit will remain aligned to the unchanged higher rate threshold at £50,270 for 2022/23, as previously announced.
Health and Social Care Levy
The Health and Social Care Levy Act 2021 provides for a 1.25% levy payable on earnings or profits on which an employee or employer is already liable to pay Class 1, Class 1A or class 1B NICs.
The Levy will be subject to the same reliefs, thresholds and requirements of NICs.
As stated above, from 6 April 2022 a temporary 1.25% increase to the main and additional rates of NICs will take effect. This will last for the 2022/23 tax year only.
Revenue from the Levy will go towards funding the NHS, health and social care. The Levy will then take effect from 6 April 2023, with NICs rates returning to 2021/22 tax year levels.
From April 2023, the Levy will be separated out from NICs and will also apply to the earnings of individuals working above State Pension age, and NIC rates will return to 2021-22 levels.
There is pressure on the Chancellor of the Exchequer to postpone the 1.25% increase due to the rising cost of living.
See our separate article on the Health and Social Care Levy.
On 31 January 2022, HMRC published new guidance - Prepare for the Health & Social Care Levy.
Freeports
From 6 April 2022, Freeports Employer NICs relief will be introduced.
This reduction in the rate of employer NICs will be available for all Freeport-based businesses, that is employers with a business premises in a Freeport tax site, and only for employees who are working in that area.
This means that all employers based within, and employing people working within, a Freeport tax site can apply a zero-secondary rate of employer NICs for such employees’ earnings above the Secondary Threshold, up to and including a new Freeport Upper Secondary Threshold. The tables are set out below.
Only new employees who spend 60% or more of their working time within a Freeport tax site are eligible, and the rate can be applied on the earnings of all new hires up to £25,000 per annum from April 2022, for 36 months per employee.
See our separate article on the Plymouth freeport.
HMRC issued guidance on 28 February 2022 on Freeport NICs relief.
National Insurance contributions
In 2022/23 only, the Health and Social Care Levy will be collected through a temporary 1.25% increase in the main and additional rates of Class 1 and Class 4 NICs.
Employee and employer Class 1 rates and thresholds (£ per week)
|
2021/22 |
2022/23 | |
|---|---|---|
| Weekly Lower Earnings Limit | £120 | £123 |
| Weekly Primary Threshold | £184 | £190 |
| Weekly Secondary Threshold | £170 | £175 |
| Upper Earnings Limit | £967 | £967 |
| Upper Secondary Threshold or under 21s | £967 | £967 |
| Apprentice Upper Secondary Threshold for under 25s | £967 | £967 |
| Veterans’ Upper Secondary Threshold | £967 | £967 |
| Freeport Upper Secondary Threshold | N/A | £481 |
| Employment Allowance (per employer) | £4,000 per year | £4,000 per year |
Employee’s (primary) Class 1 contribution rates
| Earnings band | 2021/22 | 2022/23 |
|---|---|---|
| Below Weekly Lower Earnings Limit | N/A | N/A |
| Weekly Lower Earnings Limit to Weekly Primary Threshold | 0% | 0% |
| Weekly Primary Threshold to Upper Earnings Limit | 12% | 13.25% |
| Above Upper Earnings Limit | 2% | 3.25% |
Married woman’s reduced rate for (primary) Class 1 contribution rates
|
2021/22 |
2022/23 |
|
|---|---|---|
| Weekly earnings from between the Primary Threshold and Upper Earnings Limit | 5.85% | 7.1% |
| Weekly earnings above the Upper Earnings Limit | 2% | 3.25% |
Employer’s (secondary) Class 1 contribution rates
| Earnings band |
2021/22 |
2022/23 |
|---|---|---|
| Below Secondary Threshold | 0% | 0% |
| Above Secondary Threshold | 13.8% | 15.05% |
Employer’s (secondary) Class 1 rates for employees under 21
| Earnings band | 2021/22 | 2022/23 |
|---|---|---|
| Below Upper Secondary Threshold | 0% | 0% |
| Above Upper Secondary Threshold | 13.8% | 15.05% |
Employer’s (secondary) Class 1 contribution rates for apprentices under 25
| Earnings band | 2021/22 | 2022/23 |
|---|---|---|
| Below Apprentice Upper Secondary Threshold | 0% | 0% |
| Above Apprentice Upper Secondary Threshold | 13.8% | 15.05% |
Self-employed Class 2 contribution rates and thresholds (£ per week)
| 2021/22 | 2022/23 | |
|---|---|---|
| Small Profits Threshold | £6,515 | £6,725 |
Class 2 contribution rates
| 2021/22 | 2022/23 | |
|---|---|---|
| Annual profits (£ a year) | £ per week | £ per week |
| Below Small Profits Threshold | £3.05 (voluntary) | £3.15 (voluntary) |
| Above Small Profits Threshold | £3.05 | £3.15 |
| Special Class 2 rate for share fishermen | £3.70 | £3.80 |
| Special Class 2 rate for volunteer development workers | £6.00 | £6.15 |
Class 3 National contributions: other rates and thresholds (£ per week)
| 2021/22 | 2022/23 | |
|---|---|---|
| Voluntary contributions | £15.40 | £15.85 |
Self-employed Class 4 contribution rates and thresholds (£ per year)
| 2021/22 | 2022/23 | |
|---|---|---|
| Lower Profits Limit | £9,568 | £9,880 |
| Upper Profits Limit | £50,270 | £50,270 |
Class 4 contribution rates
| 2021/22 | 2022/23 | |
|---|---|---|
| Annual profits band | NIC rate (per cent) | NIC rate (per cent) |
| Below Lower Profits Limit | 0% | 0% |
| Lower Profits Limit to Upper Profits Limit | 9% | 10.25% |
| Above Upper Profits Limit | 2% | 3.25% |
You can download a full summary and tax tables from the Autumn 2021 Budget here:
- Full Budget summary (pdf)
- Tax Tables 2022/23.(pdf)
You can also watch our Post-Budget Webinar on YouTube.
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