National Insurance regulations published
Two draft National Insurance Regulations for the 2014-15 tax year have been published and are expected to come into force on 6 April 2014. The draft regulations and order are subject to approval by both Houses of Parliament.
The first regulation specifies the levels of the Lower Earnings Limit (LEL), the Upper Earnings Limits (UEL), the Primary Threshold (PT) and the Secondary Threshold (ST) for Class 1 NICs for the tax year beginning 6 April 2014. The instrument also sets the monthly and annual prescribed equivalents of the PT and ST.
|2014/15 – Weekly||2013/14 – Weekly|
|Lower earnings limit||£111||£109|
|Upper earnings limit||£805||£797|
|Primary earnings threshold||£153||£149|
|Secondary earnings threshold||£153||£148|
The second regulation specifies the rates of Class 2 and Class 3 National Insurance Contributions (NICs) and the amount of earnings below which an earner may be excepted from liability for Class 2 Contributions.
|Flat rate||£2.75pw, £143pa||£2.70pw, £140.40pa|
|Small earnings exception||£5,885pa||£5,725pa|
Over £41,865pa: 2%
Over £41,450pa: 2%
The flat rate for Class 3 Contributions will increase to £13.90pw (2013/14: £13.55pw).