Policy paper

Changes to the Class 1 National Insurance Contributions Secondary Threshold, the Secondary Class 1 National Insurance contributions rate, and the Employment Allowance, all from 6 April 2025

This tax information and impact note is about changes to Secondary Class 1 National Insurance contributions and changes to the Employment Allowance.

From:
HM Revenue & Customs
Published
13 November 2024

Documents

Changes to the Class 1 National Insurance Contributions Secondary Threshold, the Secondary Class 1 National Insurance contributions rate, and the Employment Allowance from 6 April 2025

HTML

Details

This measure decreases the National Insurance contributions Secondary Threshold, the earnings after which an employer becomes liable to pay secondary Class 1 National Insurance contributions on a given employment, from £9,100 per year to £5,000 per year. It also:

  • increases the Secondary Class 1 National Insurance contributions rate from 13.8% to 15%
  • increases the maximum Employment Allowance from £5,000 to £10,500
  • removes the £100,000 eligibility threshold that currently applies to the Employment Allowance

Updates to this page

Published 13 November 2024

Sign up for emails or print this page

Related content