29 June: National Insurance Contributions (NICs) Threshold Uplift Lands Next Week
Millions of pay packets will receive a boost from next week when the threshold at which National Insurance contributions (NICs) become payable rises from £9,880 to £12,570.
The change, which comes into effect on Wednesday 6 July 2022, was announced in the Spring Statement in March.
NICs increased as planned at the start of this financial year on 6 April to help fund the government’s Covid response, but the scheduled move attracted criticism in the early months of this year, with critics slamming it as another cost burden on households facing a worsening cost-of-living crisis.
This prompted Rishi Sunak MP, Chancellor of the Exchequer, to engineer the upcoming threshold increase.
NICs, a tax on earnings and self-employed profits, are the UK government’s second-largest source of tax revenue after income tax. Payment of…
