National insurance thresholds for 2021/22

23 December 2020: Clarity emerges concerning the re-rating of national insurance contributions as ministerial statement confirms that September's consumer price index will be used as the basis for limits and thresholds for 2021/22.

A written ministerial statement by the Financial Secretary to the Treasury on 16 December concerning national insurance contributions (NICs) re-rating for the tax year 2021/22 confirmed that the government will use the September consumer price index (CPI) figure (0.5%) as the basis for setting all national insurance limits and thresholds, and the rates of Class 2 and Class 3 NICs for 2021/22.

Following this statement, a table of national insurance rates, thresholds and limits for employees and employers was issued by HMRC to software developers on 22 December 2020. The changes will be delivered through secondary legislation in the new year and subject to parliamentary approval. In summary, the limits proposed for employers and employees are as follows:

Class 1
	2021/22	2020/21
Lower earnings limit	£120 per week £520 per month £6,240 per year	£120 per week £520 per month £6,240 per year
Primary threshold	£184 per week £797 per month £9,568 per year	£183 per week £793 per month £9,500 per year
Secondary threshold	£170 per week £737 per month £8,840 per year	£169 per week £732 per month £8,788 per year
Upper earnings limit / Upper secondary threshold / Apprentice upper secondary threshold	£967 per week £4,189 per month £50,270 per year	£962 per week £4,167 per month £50,000 per year