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 |
£118 per week |
|
Primary Threshold |
£183 per week |
£166 per week |
|
Secondary (Employers) Threshold |
£169 per week |
£166 per week |
|
Upper Earnings Limit |
£962 per week |
£962 per week |
|
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.
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