Check how the National Insurance changes will affect you
Her Majesty’s Revenue & Customs (HMRC) has released a tool that allows employees to check how the recent and upcoming changes in National Insurance (NI) affect their earnings.
In the spring statement delivered back in March, it was announced that the Primary Threshold (PT) will be increasing from £823 per month to £1,048 from 6 July 2022. For Directors, the annual threshold for 22/23 is £11,908 per annum.
From April of this year the rate of NI contributions was increase by 1.25 percentage points for employee and employer. From April 2023 the rate will go back to what it was but an additional Health & Social Care Levy of 1.25% on earnings subject to NI will be deductible.
The tool allows employees to get an estimate of how all the NI changes will affect their yearly take home pay.