National Insurance Contributions (NI)
No changes to the rates of NI contributions were announced in the Budget.
The primary and secondary thresholds (that at which employees and employers, respectively, start to pay NI) have been increased to £144 and £146 per week respectively.
The upper earnings (or profits for the self employed) limit remains at £42,475, aligned with the higher rate tax threshold (ie the total of the personal allowance for those under 65 and the basic rate tax limit).
Comment: For those of you paying yourselves the National Insurance limit, this means that you should increase your pay to £7,488 per annum (£624 per month) from April.
It was announced in the Budget that the upper earnings limit for 2013/14 will be reduced to £41,450, again aligned with the point at which 40% tax becomes payable.
Details of the rates of NI for 2012/13 can be found at http://www.hmrc.gov.uk/rates/nic.htm
Walker Accountancy 