Posted 28th April 2020
National Insurance thresholds for 2020/21
The level at which taxpayers start to pay NICs has risen by more than 10% to £9,500 per year for both employed and self employed individuals (previously £8,632).
All other thresholds for 2020/21 have risen in line with inflation, except for the upper NICs thresholds which will remain at £50,000. The secondary threshold for employer NI contributions has risen with inflation to £8,788 (no longer aligned with the employee Primary Threshold).
Benefit rates for 2020/21
Draft regulations have been published setting out benefit rates for 2020/21 as follows:
- The New State Pension will rise by £6.60 a week to £175.20
- The Old Age Pension will increase by £5.05 a week to £134.25
- Additional Pension, Graduated Pension and other pension increments will rise by 1.7%, in line with Consumer Price Index (CPI) inflation to September 2019
- Indexation of benefits in line with CPI resumes for all inflation-linked benefits and tax credits this year, resulting in a 1.7% increase