National Insurance contributions (NICs) thresholds

The measure

As previously announced, and legislated for in February 2021, the government has confirmed that in the 2021/22 tax year NICs thresholds will rise with consumer prices inflation (CPI). This will bring the NICs Primary Threshold/Lower Profits Limit to £9,568 and the Upper Earnings Limit (UEL)/Upper Profits Limit (UPL) to £50,270, in line with the income tax higher rate threshold (HRT). The UEL/UPL will then remain aligned with the HRT at £50,270 until April 2026.

All other NICs thresholds will be considered and set at future fiscal events. NICs thresholds apply across the UK.

Who will be affected?

All businesses, employers, employees and self-employed individuals. 

When will the measure come into effect?

This measure will be implemented from 6 April 2021.