PART 2Rates, limits and thresholds for National Insurance contributions

Interpretation2

In this Part—

  • “the Act” means the Social Security Contributions and Benefits Act 1992;

  • “the Northern Ireland Act” means the Social Security Contributions and Benefits (Northern Ireland) Act 1992.

Small profits threshold for Class 2 contributions3

In section 11(4) of the Act13 and the Northern Ireland Act14 (Class 2 contributions small profits threshold) for “£6,475” substitute “£6,515”.

Amount of a Class 3 contribution4

In section 13(1) of the Act15 and the Northern Ireland Act16 (Class 3 contributions) for “£15.30” substitute “£15.40”.

Lower limit and upper limit of profits for Class 4 contributions5

1

In sections 15(3)(a) and 18(1)(c) and (1A)(a) of the Act17 and the Northern Ireland Act18 (Class 4 contributions recoverable under the Income Tax Acts and under regulations) for “£9,500” (lower limit) substitute “£9,568”.

2

In sections 15(3) and 18(1A) of the Act and the Northern Ireland Act for “£50,000” (upper limit) in each place where it appears substitute “£50,270”.

Amendments to the Social Security (Contributions) Regulations 20016

1

The Social Security (Contributions) Regulations 200119 are amended as follows.

2

In regulation 10 (earnings limits and thresholds)—

a

in the introductory words, for “2020” substitute “2021”;

b

in paragraphs (b) (upper earnings limit: primary Class 1 contributions), (e) (upper secondary threshold: under 21 group secondary Class 1 contributions) and (f) (upper secondary threshold: apprentices secondary Class 1 contributions) for “£962” substitute “£967”;

c

in paragraph (c) (primary threshold: primary Class 1 contributions) for “£183” substitute “£184”; and

d

in paragraph (d) (secondary threshold: secondary Class 1 contributions) for “£169” substitute “£170”.

3

In regulation 11 (prescribed equivalents)—

a

in paragraphs (2A) (upper earnings limit), (3B) (upper secondary threshold: under 21 age group) and (3C) (upper secondary threshold: apprentices)—

i

in sub-paragraph (a) for “£4,167” substitute “£4,189”; and

ii

in sub-paragraph (b) for “£50,000” substitute “£50,270”;

b

in paragraph (3) (primary threshold)—

i

in sub-paragraph (a) for “£792” substitute “£797”; and

ii

in sub-paragraph (b) for “£9,500” substitute “£9,568”;

c

in paragraph (3A) (secondary threshold)—

i

in sub-paragraph (a) for “£732” substitute “£737”; and

ii

in sub-paragraph (b) for “£8,788” substitute “£8,840”.