Budget summary, autumn 2018
National Insurance Contributions
Thresholds and rates (Table D)
From 6 April 2019, the National Insurance Contributions (NIC) thresholds for employers and employees rise from £162 to £166 per week (£8,632 per year). The Upper Earnings Limit will increase to £962 per week (£50,024 per year, or £50,000 where a single annual calculation is carried out) in line with the threshold for 40% Income Tax.
Two years ago it was announced that Class 2 NIC would be abolished in April 2018, and entitlement to the State Pension would be built up by paying Class 4 NIC. Increases in the rate of Class 4 NIC were proposed at the March 2017 Budget but were withdrawn following protests; as a result the abolition of Class 2 NIC was deferred to April 2019, and in September it was announced that it will remain in force during the life of the current Parliament. Class 2 NIC rises from £2.95 to £3 per week for 2019/20.