Changes to the Class 1 National Insurance Contributions Secondary Threshold, the Secondary Class 1 National Insurance contributions rate, and the Employment Allowance, all from 6 April 2025
This tax information and impact note is about changes to Secondary Class 1 National Insurance contributions and changes to the Employment Allowance.
↓
▤ Verbatim text from source document
This measure decreases the National Insurance contributions Secondary Threshold, the earnings after which an employer becomes liable to pay secondary Class 1 National Insurance contributions on a given employment, from £9,100 per year to £5,000 per year. It also:
- increases the Secondary Class 1 National Insurance contributions rate from 13.8% to 15%
- increases the maximum Employment Allowance from £5,000 to £10,500
- removes the £100,000 eligibility threshold that currently applies to the Employment Allowance