National Insurance Contributions (NI)
No changes to the rates of income based NI contributions on employment were announced in the Budget.
The date for the abolition of Class 2 NI (paid at a weekly flat rate by the self employed) was confirmed as 6 April 2019. It will be £2.95 per week for 2018-9 and will continue to be collected via self assessment tax returns.
The primary and secondary thresholds (at which employees and employers, respectively, start to pay NI) will increase to £162. This means that company directors paying themselves the national insurance threshold can have an increase in pay from April 2018 to £702 per month (from £680.33).
The upper earnings (or profits for the self employed) limit is £46,350 (£892 per week), aligned with the point at which 40% tax becomes payable.
Details of the rates of NI can be found here.
Employer’s Employment Allowance
The employment allowance will remain at £3,000 per annum for 2018-9
The Minimum Wage rates from 1 April 2017 will be:
- 25+ (National Living Wage) – increases from £7.50 to £7.85 per hour
- 21 to 24 year olds increases from £7.05 to £7.38 per hour
- 18 to 20 year olds increases from £5.60 to £5.90 per hour
- 16 to 17 year olds increases from £4.05 to £4.20 per hour
- apprentices increases from £3.50 to £3.70 per hour