Rise in the National Insurance threshold means fewer people will pay National Insurance
From 6 July 2022, the National Insurance threshold has risen to £12,570 a year, up from £9,880. That means employees can now earn up to £12,570 before they start to pay any Tax or National Insurance.
National Insurance is currently paid at a rate of 13.25% on earnings up to £50,270 and at a rate of 3.25% on earnings above that figure.
This change will mean that, from 6 July, workers will have more take home pay after Tax and National Insurance is applied, and more than two million workers will no longer pay any National Insurance at all. With all of us affected by soaring food, fuel and energy prices, mortgage interest rates rising and April’s rise in the National Insurance rate, this change is a welcome boost for household incomes.
Further information and advice
If you would like to find out more about how this change affects you, or wish to find out more about what financial support you may be entitled to, contact our Family Benefits Advice Service for free, impartial and confidential advice. Call us on Freephone 0800 028 3008 or email email@example.com – we are here to help.