National Insurance: What will tax changes cost me?

From April 6, employees, employers and the self-employed will all pay 1.25p more in the pound for NI.

Employees pay NI on their wages
Employers also pay extra NI contributions for staff
The self-employed pay NI on their profits
From April 2023, the government says National Insurance will return to its old rate.

From April 2022, anybody earning more than £9,880 a year will pay 1.25p more in the pound.

However, from July 2022 the point at which employees start paying NI will increase to £12,570.

Combining those two measures means that in the 12 months from April 2022, anyone earning less than about £34,000 will pay less NI than they did last year. Anybody earning more than that will pay more.

An employee on £20,000 a year will pay £178 less NI in 2022-23 than they did the previous year.

Someone on £50,000 will pay £197 more.

For full rates for 2022-2023 tax year, please see link.