Page 29 - Budget Newsletter - March 2023

Class 1 employee NIC - 2023/24
Employee Employer
+
Main NIC rate 12% 13.8%
No NICs on first:
Under 21* £242 pw £967 pw
21* & over £242 pw £175 pw
Main NIC charged up to £967 pw No limit
Additional NIC rate 2%
on earnings over £967 pw N/A

* Under 25 for apprentices.
+ No employer NICs for veterans in first 12 months of employment.
** Company directors pay a blended rate of NICs in 2022/23 – taking into account the changes
in rates throughout the year.

Employment Allowance
2022/23 2023/24

Per business* £5,000 £5,000

* Not available if a director is the sole employee or the previous tax year’s secondary NICs
were £100,000 or more.
NIC limits and thresholds 06/04/22 06/07/22
to to 2022/23 2023/24
05/07/22 05/04/23
Weekly Weekly Yearly Weekly Yearly
£ £ £ £ £
Lower earnings limit 123 123 6,396 123 6,396
Primary earnings threshold 190 242 11,908 242 12,570
Secondary earnings threshold 175 175 9,100 175 9,100
Upper secondary threshold - U21s* 967 967 50,270 967 50,270
Upper earnings limit 967 967 50,270 967 50,270

* Under 25 for apprentices.

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