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National Insurance Contributions — Thresholds

Class 1 — Employee and employer

2022/23 2021/22
Earnings Weekly Monthly Annual Weekly Monthly Annual
Lower Earnings Limit (LEL) £123 £533 £6,396 £120 £520 £6,240
Earnings Threshold(ET)
- Primary Threshold (PT) 1 £242 £1,048 £12,570 £184 £797 £9,568
- Secondary Threshold (ST) £175 £758 £9,100 £170 £737 £8,840
Freeport Upper Secondary Threshold (FUST) £481 £2,083 £25,000 N/A N/A N/A
Upper Secondary Threshold (UST) £967 £4,189 £50,270 £967 £4,189 £50,270
Apprentice Upper Secondary Threshold (AUST) £967 £4,189 £50,270 £967 £4,189 £50,270
Upper Earnings Limit (UEL) 1 £967 £4,189 £50,270 £967 £4,189 £50,270
Veterans Upper Secondary Threshold (VUST) £967 £4,189 £50,270 £967 £4,189 £50,270
Employment allowance 2 £5,000 £4,000
Apprenticeship levy 3 £15,000 £15,000
  1. The Primary Threshold will be increased with effect from 6 July 2022. Between 6 April 2022 and 5 July 2022, the respective thresholds will be: weekly – £190; monthly – £823, annual – £9,880.
  2. The UEL, along with the UST, AUST and VUST, will remain aligned with the UK higher rate tax threshold, at £50,270, until April 2026.
  3. The annual employment allowance may be offset against an employer’s Class 1 NICs but must be claimed via the normal payroll process. The allowance is not available to companies of which a director is the sole employee, and is restricted to employers whose NIC liability is less than £100,000.
  4. The apprenticeship levy is set at a rate of 0.5% of an employer’s annual pay bill and is collected via PAYE. As the annual allowance is used to offset the payment of the levy, the levy is only paid by employers whose pay bills exceed £3 million per year.

Class 2 and Class 4 — Self employed

Income or profits 2022/23 2021/22
Annual Annual
Class 2
- Small Profits Threshold (SPT) £6,725 £6,515
Class 4
- Small Profits Threshold (SPT) £6,725 £6,515
- Lower Profits Limit (LPL) 1 £11,908 £9,568
- Upper Profits Limit (UPL) 2 £50,270 £50,270
  1. The LPL will be increased to £12,570 from 6 April 2023.
  2. The UPL will remain aligned with the UK higher rate tax threshold, at £50,270, until April 2026

Other classes

Class 1A NICs are paid on amounts reported on Form P11D(b).

Class 1B NICs are paid on earnings included in a PAYE Settlement Agreement and income tax thereon.

Class 3 NICs are paid voluntarily by persons not liable for contributions, or who are excepted from Class 2 NICs or whose contributions are insufficient to qualify for benefits.