Measure
The government has confirmed that current National Insurance Contributions (NIC) thresholds for both employers and employees will be maintained at their existing levels through to April 2028. No further changes have been made to NIC for 2022/23.
The previously announced reversals of NIC rises (which had been intended to fund health and social care) will leave both employees and employers better off until 5 April 2023. The freezing of thresholds from 6 April 2023 to 5 April 2028 will mean an effective rise in NIC for both employees and  employers over time, especially as pay levels are forecast to increase over this period.
For employees currently working overseas but paying voluntary contributions to increase their qualifying years for NI purposes, the rate of Class 2 NIC will rise to £3.45 per week. This will represent a small increase in costs for employers of expatriate employees who choose to settle this on their behalf.
Thresholds are set to remain frozen until 5 April 2028.
While today’s announcement is better than many had feared, as there is no increase in the rate of employer’s NIC from 6 April 2023, the freezing of the threshold at its current relatively low level (£9,100 per annum) will be an unwelcome cost for business and will further extend the tax/NI differential between employees and the self-employed.