Changes to NI Threshold - What about LEL/PT/ST?

[Martynt74]

Question for any resident accountants/finance guys.

With the raising of the Threshold for NI contributions being raised to £12,570 in July. Does anyone know what's happening to the various previous thresholds since this is now greater than all of those.

Has the change effectively simplified the NI system?

My wife does Payroll and has had a few directors ask her advice as it would make sense that the people who used to only take a salary up to the PT/ST can now raise their salary to £12,570 with no charges, but i'm unsure if i'm missing anything and there's not much information out there i can find.

 

[Freakbro]

It looks like only the PT is changing from July* and the LEL and ST are the same from April onwards. Which is good as if they'd raised the LEL in line then it would have caused a lot of pension eligibility problems.

https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2022-to-2023

Class 1 National Insurance thresholds 2022 to 2023

Lower earnings limit
£123 per week
£533 per month
£6,396 per year

Primary threshold
6 April 2022 to 5 July 2022:

£190 per week
£823 per month
£9,880 per year

6 July 2022 to 5 April 2023:

£242 per week
£1,048 per month
£12,570 per year

Directors
For the whole tax year:

£229 per week
£11,908 per year

Secondary threshold
£175 per week
£758 per month
£9,100 per year

* But it looks like the PT for Directors is now different and fixed at £11,908 for the year from April? That's the first time I've seen that tbh.

 

[Martynt74]

Ah, i think that's partly where my confusion had hit, as something i read was around the LEL being changed, which would've meant the other thresholds being superceded.

 

[Pudney]

Yes, only PT changing.

Also yes, it's changing from 5 July and from the vagaries of how the NI system works it means the effective PT is actually £11,908.

Edit: I double checked the official announcement on annualised NI