Goodman Jones Autumn Budget Summary 2021

16 BUDGET l 27 October 2021 NATIONAL INSURANCE CONTRIBUTIONS Class 1 Employees Employee 2022/23 Employer Employee 2021/22 Employer NICs rate 13.25% 15.05% 12% 13.8% No NICs for employees generally on the first £190 pw £175 pw £184 pw £170 pw No NICs 1 for: younger/veteran employees on first £190 pw £967 pw £184 pw £967 pw freeport employees on first £190 pw £481 pw N/A N/A NICs rate charged up to £967 pw No limit £967 pw No limit NICs on earnings over (3.25% 2022/23; 2% 2021/22) £967 pw N/A £967 pw N/A 1. Employees generally under 21 years and apprentices under 25 years. Veterans in first 12 months of civilian employment. Employees at freeports in Great Britain in the first three years of employment starting from 6 April 2022. Employment allowance 2022/23 2021/22 Per business £4,000 £4,000 Not available if the sole employee is a director or employer’s NICs for 2021/22 £100,000 or more. Earnings limits and thresholds Weekly 2022/23 Annual Weekly 2021/22 Annual Lower earnings limit £123 £6,396 £120 £6,240 Primary threshold £190 £9,880 £184 £9,568 Secondary threshold £175 £9,100 £170 £8,840 Upper earnings limit (and upper secondary thresholds) £967 £50,270 £967 £50,270 Class 1A Employers 2022/23 2021/22 Most taxable employee benefits 15.05% 13.8% Class 2 Self-employed 2022/23 2021/22 Flat rate £3.15 pw £163.80 pa £3.05 pw £158.60 pa Small profits threshold: No compulsory NICs if profits do not exceed £6,725 pa £6,515 pa Class 4 Self-employed 2022/23 2021/22 On profits £9,880–£50,270 pa 10.25% £9,568–£50,270 pa 9% Over £50,270 pa 3.25% Over £50,270 pa 2% Voluntary 2022/23 2021/22 Class 3 flat rate £15.85 pw £824.20 pa £15.40 pw £800.80 pa