Noticed a slight increase in that figure on your pay check the past couple of months? That’s because of the new National Insurance primary threshold.
What is the National Insurance primary threshold (NIPT)?
The Primary National Insurance threshold is the minimum amount of money, an employee can earn before they must start paying that is National Insurance Contribution (NIC).
What’s changed?
From July, the new NIPT was increased from £9,880 to £12,570 (in line with the personal allowance for income tax figure)(£11,908 for Directors). This means that most of us will be paying a little less in National Insurance – and seeing a little more on that take home figure on the bottom of the pay check.
As of July, your personal monthly threshold increased from £823 per month to £1,047.50 per month where employees will pay the 13.25% in NIC’s.
What are the benefits of the change?
Well firstly, and as previously mentioned, most people will see a little increase in their Net Wage (cash in Bank after Taxes and deductions). Mostly helping low and middle income earners with an uplift in their of pay around £29.70 per calendar month.
To find out more about any aspect of the above, please feel free to contact us via our online form to book in for a chat.
