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What is the secondary NI threshold from April 2011?

What is the secondary NI threshold from April...

I am trying to do a salaries forecast from April 2011 onwards and need to know the new NI thresholds.

The Employee and Employer rates are increasing to 12% and 13.8% respectively from April 2011.

From my understanding the Primary threshold for employees is increasing by £570 from April 2011.

As far as Employer NI is concerned I keep on seeing the following statement everywhere:

"the threshold at which employers start to pay National Insurance will be raised by £21 per week above indexation in April 2011 " ???

What is the new threshold above which Employers start paying the Secondary NI?

I should be grateful if someone can please guide me.

Kind regards


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21st Oct 2010 12:56

The simple answer is that we don't know yet and won't until the

The rumor-mill is that this will be delivered on 29th November 2010.


The £570 was the additional figure when to be used when NIC's were originally planned to rise by 0.5% this year - this has obviously changed to £21 a week now that the rise has doubled.

We can make some educated guesses, however there is more uncertainty this time as to what rate of inflation the government will use for 'indexation'.

Usually the allowance is uprated by September's RPI inflation rate (4.6%) which would make it (with the £21 a week increase added on top) £136 a week or £7,070 a year.

However the coalition may switch to using the CPI inflation rate (3.1%) to uprate it, as they have done with benefits - this would lead to a level of £134 a week or £6,980 a year.

Best to wait for the PBR really.

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By aadil
21st Oct 2010 14:29

Thanks for your reply. Much appreciated.

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