Carol Selfridge
Employers will be relieved that there are no more changes to NIC rates and bandings or consequential payroll software changes!
Like the main income tax bandings, NIC thresholds are now also frozen until the 5th of April 2028. Employers’ NIC will continue to apply at 13.8% to earnings over £9,100 per year (£175 per week) and employees and the self-employed will pay 12% and 9% on earnings/profits between £12,570 and £50,270 and 2% thereafter.
The 1.25 percentage point increase to NIC rates that was removed from the 6th of November 2022 will not be reintroduced from the 6th of April 2023.