The Budget 2017

RJMS Health Care Accountants COVID-19 summary of government offers & business support guide.

Click underlined for more details.


National Insurance Contributions

Thresholds and rates (Table D)

There have been small increases in the thresholds above which employer’s and employee’s National Insurance Contributions become payable. The upper limits for employee contributions remain aligned with the point at which 40% Income Tax is payable (£50,270 per year, or £967 per week).

The upper limit will be frozen, in common with the personal allowance and basic rate band, until the end of 2025/26. Raising the upper limit increases the amount of NIC payable – salary below that level is charged at 12%, but above that level it is charged at 2%. The Budget documents state that decisions will be taken each year on the lower threshold, which is not being fixed in advance.