National Insurance - David Allen Accountants
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National Insurance

green tick box Both the National Minimum Wage and the National Living Wage to increase from April 2018.
green tick box Changes to the Class 2  National Insurance contributions (NIC) to be delayed by a year.

 

No big giveaways on the NIC front, but a couple of small announcements tucked away alongside some previously announced upcoming changes:

National Minimum Wage

From April 2018 the National Minimum Wage rates are:

  • employees aged 25 and over £7.83
  • employees aged between 21-24 – £7.38
  • employees aged between 18-20 – £5.90
  • employees aged between 16-17 – £4.20
  • apprentices up to age 19 or in their first year of apprenticeship – £3.70

The above minimum wage rates are legally enforceable.

From April 2018, the National Living Wage for those aged 25 and over will increase to £7.83. For a full time worker this equates to being approximately £600 better off.

National Insurance contributions

The Government had previously stated that Class 2 NIC was to be abolished from April 2018 onwards and Class 4 NIC, currently 9%, would increase up to 10% from April 2018 and again up to 11% from April 2019.  These changes are to be delayed by one year.

Student loans

The student loan (plan 2) threshold will increase to £25,000 for the 2018/2019 tax year.

If you have any questions on National Insurance or payroll matters our specialists are on hand to help, give them a call on 01228 711888.