An increase to the NI threshold has been confirmed ahead of the budget on 11 March. How will this affect your clients?
Whats changing? From 6th April 2020 taxpayers will enjoy an NI threshold of £9,500 per year. During the next tax year, employees will save £104 as a result of these changes, and the self-employed will save around £78.
All the other NI thresholds will increase in line with inflation, except for the upper threshold which will remain frozen at £50,000.
Will employers also save NI? The primary and secondary thresholds have been aligned in recent years, but this increase only applies to the threshold for primary Class 1 NI. Employers will start to pay NI on their employee earnings over £8,788 per annum (£169 per week).
What to do next
This post is our attempt to make an article recently released in Tax Essentials for Advisors accessible to all. Why not leave a comment and let us know how we did? For further information on this and other topics then request more information or contact us at 01332-369999 or through the contact page of our website www.milestone-solutions.co.uk