National Insurance Employer Contributions 5 April 2022 at 5:45PM in Employment, jobseeking & training 5 replies 151 views

Robster88

Hello. 

I’ve searched online for an answer to this but haven’t been able to find one, so hoping someone here will be able to help. 

Following the spring statement I’m aware that from July the employee threshold for NI contributions is going up to £12,570, to be equal with income tax (at a new rate of 13.25%)

Is that also true of the threshold for employer contributions, i.e will employers only have to pay NI contributions on their employees salaries over £12,570 (at 15.05%). 

I’m aware there is also an upper threshold where the percentages would reduce, however are these thresholds the same for employee and employer? 

Cheers 

tizerbelle

The threshold at which employers pay NI is not increasing in July to match the employee threshold  Full details of all rates and thresholds can be found here 

Robster88

tizerbelle said:

The threshold at which employers pay NI is not increasing in July to match the employee threshold  Full details of all rates and thresholds can be found here 

Thanks I checked that website but couldn’t work out what the different thresholds for employee and employer were. 

Is it that employee contributions are the Primary Threshold figures whereas the employer contributions are the Secondary Threshold figures (so above £9,100 a year). 

Apologies for probably being dense! 

tizerbelle

Yes.
Up to 5 July, a Class A employee will pay 13.25% on earnings from £9880-50270 then 3.25% on earnings above £50270.  
From 6 July, that will change to 13.25% on earnings from £12570-50270 then 3.25% over £50270

But employers will pay 15.05% on all earnings above £9100.

Robster88

tizerbelle said:

Yes.
Up to 5 July, a Class A employee will pay 13.25% on earnings from £9880-50270 then 3.25% on earnings above £50270.  
From 6 July, that will change to 13.25% on earnings from £12570-50270 then 3.25% over £50270

But employers will pay 15.05% on all earnings above £9100.

That’s great. Thanks for the clear answer. 

Exodi

Robster88 said:

tizerbelle said:

Yes.
Up to 5 July, a Class A employee will pay 13.25% on earnings from £9880-50270 then 3.25% on earnings above £50270.  
From 6 July, that will change to 13.25% on earnings from £12570-50270 then 3.25% over £50270

But employers will pay 15.05% on all earnings above £9100.

That’s great. Thanks for the clear answer. 

Unfortunately the government is about as clear as mud on these sorts of things.