National Insurance Changes July 2022

The new changes to National Insurance will take effect from 6th July 2022.

According to the UK Government, nearly 30 million UK workers will benefit from the threshold increase, with a typical employee saving over £330 in the year from July.

This equates to around 70% of workers who pay national insurance contributions will pay less from July 2022.

The current threshold for when an employee will start paying National Insurance is £9880 per annum
From 6th July 2022 – 5th April 2023 the new threshold will be equivalent to £12,570 per year

What does this mean?

In simple terms, you will now need to earn £12,570 or more over the next year to be eligible to pay a National Insurance contribution:

if you earn £34,000 or less per annum you will actually pay less NI contribution than the previous tax year
anyone earning more than £34,000 per annum will pay more NI contribution this year

Salary examples:

A worker on £20,000 per annum had a monthly NI bill of £104 before April 2022, which will drop to around £82 from July

A worker on £30,000 per annum had a monthly NI bill of £204 before April 2022, which will drop to around £192 from July

A worker on £50,000 per annum had a monthly NI bill of £404 before April 2022, which will rise to around £413 from July

A worker on £60,000 per annum had a monthly NI bill of £423 before April 2022, which will rise to around £443 from July

What does your National Insurance contribute to?