NIC limits and thresholds for 2020/21 have been announced and draft regulations have been laid before Parliament. While the Class 1 primary threshold and Class 4 lower profits limit will increase significantly, the upper limits remain unchanged. Other thresholds will see an inflationary increase.
The above inflation increase in the primary threshold and the lower profits limit is a step towards the government’s ambition to raise these amounts to £12,500.
The limits and thresholds are as follows:
£120 per week£520 per month£6,240 per year
£118 per week£512 per month£6,136 per year
£183 per week£792 per month£9,500 per year
£166 per week£719 per month£8,632 per year
£169 per week£732 per month£8,788 per year
£962 per week£4,167 per month£50,000 per year