08 Jul National Insurance threshold increase
As of July 6th 2022 the national insurance allowance has increased to £242 per week. Meaning that both income tax and class 1 national insurance contributions now start being deducted at the same level.
It is some good news for contractors who are no doubt battling the cost-of-living crisis. It means the amount employees start paying national insurance on has increased from £190 p/w to £242 p/w. For example, prior to 6th July 2022 if an employee earned above £190 p/w they had national insurance deducted, but post July 6th 2022, employees will only pay national insurance if they earn over £242 p/w.
This amounts to a yearly saving of approximately £356 per year.
As always, i4 have worked tirelessly behind the scenes to ensure our bespoke payroll systems are up to date meaning the change will happen both seamlessly and immediately for all our contractors.