National insurance contributions limits and thresholds for 2020/21

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:

Class 1

2020/21  2019/20
Lower earnings limit

£120 per week
£520 per month
£6,240 per year

£118 per week
£512 per month
£6,136 per year

Primary threshold

£183 per week
£792 per month
£9,500 per year

£166 per week
£719 per month
£8,632 per year

Secondary threshold

£169 per week
£732 per month
£8,788 per year

£166 per week
£719 per month
£8,632 per year

Upper earnings limit

£962 per week
£4,167 per month
£50,000 per year

£962 per week
£4,167 per month
£50,000 per year

 Class 2

2020/21 2019/20
Weekly amount £3.05 £3.00
Small profits threshold  £6,475 £6,365

Class 3

2020/21 2019/20
Weekly amount £15.30 £15.00

Class 4

2020/21 2019/20
Lower profits limit £9,500 per year £8,632 per year
Upper profits limit £50,000 per year £50,000 per year

 
  
 

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