Skip to content Skip to footer
Search

Loading Results

Spring Statement - PwC comments on increase to National Insurance Contribution threshold

23 Mar 2022

Commenting on the increase to the National Insurance Contribution threshold, Christine Cairns, tax partner at PwC, says:

While the tax-free personal allowance has steadily risen in recent years to £12,570 in line with long-standing Government policy, the NI threshold has lagged behind, quietly hovering below £10,000, partly because it’s so closely linked with state welfare benefits such as pensions and jobseeker’s allowance. However, last year’s announced 1.25% increase from April brought NI sharply into focus and having reaffirmed his commitment to the rise, increasing the threshold was one of the only options left to try and soften the blow for those who will feel it most. 

“While it might seem curious to be effectively both increasing and cutting NI at the same time, today’s change is clearly targeted at helping those with the lowest earnings who may already be below the income tax threshold. The true impact of this cut, as well as of the future decrease of the basic rate tax rate, for middle income earners will need to be assessed against the impact of the freezing of the income tax bands until 2026.

About PwC

At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 156 countries with over 295,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at PwC.

PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see how we are structured for further details.

© 2022 PwC. All rights reserved

Contact us

Media Enquiries

Press office, PwC United Kingdom

Richard Pain

Richard Pain

Manager, media relations, PwC United Kingdom

Tel: +44 (0) 7841 071 907

Follow us