Employers will pay an additional £25bn in National Insurance Contributions (NICs) over the next five years, chancellor Jeremy hunt has announced.
Hunt confirmed the threshold at which employers begin paying Class 1 Secondary National Insurance Contributions (NICs) will remain at £9,100 from April.
Announcing the move as part of the Autumn Statement, HM Treasury said businesses must pay their fair share.
“The government will fix the level at which employers start to pay Class 1 Secondary NICs for their employees (the Secondary Threshold) at £9,100 from April 2023 until April 2028,” it said.
“It is fair that businesses play their part in reducing the UK’s debt. The Employment Allowance means that 40% of businesses do not pay NICs and will be unaffected by this change, and the largest employers contribute the most.”
The move will raise an additional £3.1bn in 2023-24 rising to above £5.3bn for each of the next four years up to and including 2027-28.
