NIC changes 6 July
Posted on 30th June 2022 at 20:39
From 6 July 2022 the class 1 National Insurance contributions threshold has risen in line with the personal allowances to £12,570. You will need to ensure that your payroll is updated to reflect this.
If you use our payroll services, this has been done for you.
If you use HMRC’s Basic PAYE Tools these have been updated and you will need to download a new version.
Employees can see the impact on the HMRC calculator. This calculator however is not suitable for the self-employed.
How does this affect directors of limited companies?
Directors of limited companies pay their National Insurance contributions differently to employees as their contributions are calculated on an annual basis rather than monthly. For 2022-23 tax year directors will be able to earn £11,908 before making Class 1 NI contributions.
How does this affect the self-employed?
Self-employed people also pay their National Insurance contributions on an annual basis, so again they will be able to earn £11,908 before making Class 4 NI contributions.
Tagged as: HMRC, National Insurance, payroll
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