National Insurance – amended thresholds
The national insurance regulations for the 2010-11 year have been published and came into force on 6 April 2010. The regulations actually implement only one change. The Lower Earnings Limit (LEL) will increase by £2 to £97 from 2010-11.
The other thresholds remain the same as before:
|£ per week||2010-11|
|Upper earnings limit, primary Class 1||£844|
|Upper Accruals Point||£770|
The rates of Class 1 and Class 4 NICs remain at 11% and 9% respectively. The Class 1 employer rate remains at 12.8% and the additional rate of Class 1 and 4 NIC’s at 1%. It was the proposed increase in the employer rate to 13.8% from 6 April 2011 that has been the focus of polictical debate.