Warning: count(): Parameter must be an array or an object that implements Countable in /var/www/html/vhosts/taxationweb.co.uk/library/Zend/Db/Table/Abstract.php on line 1307
National Insurance Rates 2020/21
This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet
National Insurance Rates 2020/21
10/02/2020, by Lee Sharpe, Tax News - PAYE and Payroll Taxes, National Insurance, NICs
3449 views
0
Rate:
Rating: 0/5 from 0 people

The government has published draft NIC Regulations covering the proposed rates of National Insurance Contributions for 2020/21. For many years, these have been trailed in the Autumn Statement but the repeated postponement of the Autumn Budget/Statement means that they have only just been published.

Class I

2020/21

2019/20

Lower Earnings Limit

£120 per week
£520 per month
£6,240 per year

£118 per week
£512 per month
£6,136 per year

Primary Threshold

£183 per week
£792 per month
£9,500 per year

£166 per week
£719 per month
£8,632 per year

Secondary (Employers) Threshold

£169 per week
£732 per month
£8,788 per year

£166 per week
£719 per month
£8,632 per year

Upper Earnings Limit

£962 per week
£4,167 per month
£50,000 per year

£962 per week
£4,167 per month
£50,000 per year

Class II

£3.05 per week

£3.00 per week

Small Profits Threshold

£6,475 per year

£6,365 per year

Class III (voluntary)

£15.30 per week

£15.00 per week

Class IV

 

 

Lower Profits Limit

£9,500 per year

£8,632 per year

Upper Profits Limit

£50,000 per year

£50,000 per year

 

Note that while the government's manifesto pledge aspiration to start raising the NIC threshold to £12,500 does appear to have materialised - both for employees and for the self-employed -

  • It seems that Employers' Secondary Contributions have remained rooted at a standard inflationary increase, marking another divergence in the alignment of the thresholds, and
  • The Upper Earnings/Profits Limit has stayed at £50,000; given that the rate decreases above these Limits, sticking at £50,0000 will - unusually - benefit the Contributor because he or she will pay at the higher (standard) rate for a narrower band.

About The Author

Lee is TaxationWeb's Articles & News Editor and writes for TaxationWeb. He is a Chartered Tax Adviser with experience of advising individuals and owner-managed businesses over a broad spectrum of tax matters.
Back to Tax News
Comments

Please register or log in to add comments.

There are not comments added

Tony Margaritelli gives us an update following the recent government announcement about easing lockdown.