Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

National Insurance primary threshold to align with the personal tax allowance

29 March 2022
Issue: 4834 / Categories: News

In his spring statement the chancellor announced that the primary threshold for class 1 National Insurance contributions and the lower profits limit (LPL) for class 4 contributions will rise from 6 July 2022. This will align them with the personal allowance for income tax which is £12 570 a year. These thresholds will remain aligned.

This means the LPL will be £11 908 for 2022-23 which is equivalent to 13 weeks of the threshold at £9 880 and 39 weeks at £12 570 reflecting the position for employees - which is derived from the pre-July weekly primary threshold of £190 and the post-July threshold of £242.

From April 2022 this measure also reduces class 2 National Insurance liabilities to nil on profits between the small profits threshold (SPT) and LPL. This will ensure that no one earning between the SPT and LPL will pay...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon