Updated: Oct 4, 2022
From 6th July, there will be an increase to the National Insurance threshold from £9,880 to £12,570.
The increase will mean, according to the Government, that around 70% of NICs payers will pay less in contributions, after accounting for the recent Health and Social Care Levy.
HMRC have created a tool on their website for employees to work out how the changes to the threshold will affect how much they will pay.
Please note, for the calculation to be correct, a person must be employed and paid the same amount monthly by their employer, through the PAYE system. The tool will not work for those who are not liable to pay the main rate of Class 1 contributions on earnings or profits.