National Insurance primary threshold to align with the personal tax allowance

In his spring statement the chancellor announced that the primary threshold for class 1 National Insurance contributions and the lower profits limit (LPL) for class 4 contributions will rise from 6 July 2022. This will align them with the personal allowance for income tax which is £12 570 a year. These thresholds will remain aligned.

This means the LPL will be £11 908 for 2022-23 which is equivalent to 13 weeks of the threshold at £9 880 and 39 weeks at £12 570 reflecting the position for employees - which is derived from the pre-July weekly primary threshold of £190 and the post-July threshold of £242.

From April 2022 this measure also reduces class 2 National Insurance liabilities to nil on profits between the small profits threshold (SPT) and LPL. This will ensure that no one earning between the SPT and LPL will pay any...