From 6th July 2022, the level at which people start making National Insurance contributions (NICs) rose from £9,880 to £12,570.
According to the Treasury, the threshold change means that 70% of UK workers will pay less in NICs, even after accounting for the 1.25% increase through the Health and Social Care Levy which came into effect on 6 April 2022.
The threshold rise was previously planned for the end of parliament, but the former Chancellor brought forward these plans amid the rising cost of living.
If you would like to check how the National Insurance contribution changes will affect you, you can use HMRC’s calculation tool.
If you would like to discuss these changes, please do not hesitate to contact a member of our team.