National Insurance threshold

Currently, the NI threshold for class one payments is £8,632, meaning that if earnings are below this level no NI is to be paid. However, the government has recently announced that the threshold for NI contributions will be raised from April, with no changes or ramifications on state pension credits.

Recent legislation put forward in parliament detailed that the threshold will be raised to £9,500 from April 2020. According to the government, this will save a typical employee around £104, with the self-employed also having £78 cut.

The government has expressed a commitment to reducing NI contributions for low earners and they have announced plans to eventually raise the threshold further to £12,500. Upper thresholds of NI contributions will remain frozen at £50,000.