Autumn Statement: Income tax and national insurance for 2016/17

In his Autumn statement delivered on 25 November 2015, Chancellor George Osborne announced the national insurance thresholds and rates for 2016/17 (see below).

Contribution thresholds Current - 6 April 2015 2016/17
Weekly lower earnings limit (LEL) £112 £112
Weekly primary thresholds (PT) £155 £155
Weekly secondary threshold (ST) £156 £156
Upper earnings (UEL) £815 £827
Upper profits limit (UPL) £42,385 per year £43,000 per year
Upper secondary threshold for under 21's* £815 £827
Small profits threshold (SPT) (Small earnings exception) £5,965 £5,965
Lower profits limit (LPL) £8,060 (per year) £8,060 (per year)
Employment allowance £2,000 (per year, per employee) £3,000 (per year, per employee)
Apprentice upper secondary threshold (AUST) for under 25s   £827

* From 6 April 2015, employer's national insurance are not due in relation to employees under 21. The exemption applies to earnings up to the secondary threshold.

Table 1: Class 1 contribution rates

Employee (primary)
Earnings (a week) Current - 6 April 2015 2016/17
Between PT and UEL 12% 12%
Above UEL 2% 2%
Employers (secondary)
Earnings (a week) Current - 6 April 2015 2016/17
Above ST 13.8% 13.8%

Table 2: Other rates

  Current - 6 April 2015  2016/17
Self-employed Class 2 rate above SPT £2.80 a week £2.80 a week
Class 4 rate between LPL and UPL 9% 9%
Class 4 rate above UPL 2% 2%
Married women's reduced rate between PT and UEL 5.85% 5.85%
Special Class 2 rate for share fishermen £3.45 per week £3.45 per week
Special Class 2 rate for volunteer development workers £5.60 per week £5.60 per week
Class 3* rate £14.10 per week £14.10 per week

In addition to the above the chancellor also announced that the current Statutory rates for sick pay and maternity pay to remain the same in 2016

Posted: Mon 30 Nov 2015
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