Sarah Bradford explains changes to National Insurance contributions taking effect during the tax year 2022/23.
The National Insurance contributions (NICs) rates and thresholds that were to apply for the 2022/23 tax year had already been announced and given legislative effect when the Chancellor delivered his Spring Statement in March 2022.
Against a backdrop of rising inflation and spiralling energy crises, there had been calls for the government to abandon or delay the 1.25% rate increases applying to Classes 1, 1A, 1B and 4 NICs for 2022/23, pending the introduction of the health and social care levy from 6 April 2023. The Chancellor did not bow to that pressure, but he did accelerate the alignment of the primary threshold and Class 4 NICs lower profits limit with the personal allowance, which had been promised by the end of the current parliament. The figures will be aligned from 6 July 2022. As this is partway through the
