{"id":549,"date":"2021-07-09T11:04:55","date_gmt":"2021-07-09T10:04:55","guid":{"rendered":"https:\/\/accountants247glasgowsouth.co.uk\/?p=549"},"modified":"2021-07-09T11:05:10","modified_gmt":"2021-07-09T10:05:10","slug":"2021-2022-national-insurance-thresholds-and-rates","status":"publish","type":"post","link":"https:\/\/accountants247glasgowsouth.co.uk\/?p=549","title":{"rendered":"2021\/2022 National Insurance Thresholds and Rates"},"content":{"rendered":"\n<p id=\"block-f542008d-b4b8-4934-95fb-0b06425c0566\">You can only make National Insurance deductions on earnings above the Lower Earnings Limit (LEL).&nbsp; These rates are being frozen until April 2026.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Class 1 National Insurance Thresholds<\/strong><\/td><td><strong>2021 to 2022<\/strong><\/td><\/tr><tr><td>&nbsp;LEL&nbsp;<\/td><td>\u00a3120 per week\u00a3520 per month\u00a36,240 per year<\/td><\/tr><tr><td>&nbsp;Primary Threshold (PT)<\/td><td>\u00a3184 per week\u00a3797 per month\u00a39,568 per year<\/td><\/tr><tr><td>&nbsp;Secondary Threshold (ST)<\/td><td>\u00a3170 per week\u00a3737 per month\u00a38,840 per year<\/td><\/tr><tr><td>&nbsp;Upper Secondary Threshold (under 21) (UST)<\/td><td>\u00a3967 per week\u00a34,189 per month\u00a350,270 per year<\/td><\/tr><tr><td>&nbsp;Apprentice Upper Secondary Threshold (apprentice under 25) (AUST)<\/td><td>\u00a3967 per week\u00a34,189 per month\u00a350,270 per year<\/td><\/tr><tr><td>&nbsp;Upper Earnings Limit (UEL)<\/td><td>\u00a3967 per week\u00a34,189 per month\u00a350,270 per year<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p id=\"block-17afd933-4095-4897-a84c-130bca01a591\"><strong>Employee (Ees) deductions at the following rates: &#8211;<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>NI Category Letter<\/strong><\/td><td><strong>Earnings at or above LEL up to and including PT<\/strong><\/td><td><strong>Earnings above the PT up to and including UEL&nbsp;<\/strong><\/td><td><strong>Balance of earnings above UEL<\/strong><\/td><\/tr><tr><td>A<\/td><td>0%<\/td><td>12%<\/td><td>2%<\/td><\/tr><tr><td>B<\/td><td>0%<\/td><td>5.85%<\/td><td>2%<\/td><\/tr><tr><td>C<\/td><td>Nil<\/td><td>Nil<\/td><td>Nil<\/td><\/tr><tr><td>H (apprentice under 25)<\/td><td>0%<\/td><td>12%<\/td><td>2%<\/td><\/tr><tr><td>J<\/td><td>0%<\/td><td>2%<\/td><td>2%<\/td><\/tr><tr><td>M (under 21)<\/td><td>0%<\/td><td>12%<\/td><td>2%<\/td><\/tr><tr><td>Z (under 21 deferment)<\/td><td>0%<\/td><td>2%<\/td><td>2%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p id=\"block-bfdebb1f-d671-429e-8833-1866b071752f\"><strong>Employer (Ers) deductions at the following rates: &#8211;<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>NI Category Letter<\/strong><\/td><td><strong>Earnings at or above LEL up to and including PT<\/strong><\/td><td><strong>Earnings above the PT up to and including UEL&nbsp;<\/strong><\/td><td><strong>Balance of earnings above UEL<\/strong><\/td><\/tr><tr><td>A<\/td><td>0%<\/td><td>13.8%<\/td><td>13.8%<\/td><\/tr><tr><td>B<\/td><td>0%<\/td><td>13.8%<\/td><td>13.8%<\/td><\/tr><tr><td>C<\/td><td>0%<\/td><td>13.8%<\/td><td>13.8%<\/td><\/tr><tr><td>H (apprentice under 25)<\/td><td>0%<\/td><td>0%<\/td><td>13.8%<\/td><\/tr><tr><td>J<\/td><td>0%<\/td><td>13.8%<\/td><td>13.8%<\/td><\/tr><tr><td>M (under 21)<\/td><td>0%<\/td><td>0%<\/td><td>13.8%<\/td><\/tr><tr><td>Z (under 21 deferment)<\/td><td>0%<\/td><td>0%<\/td><td>13.8%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p id=\"block-e6c65a0b-3d08-489c-aa17-bee6da053761\">For qualifying employers, the \u00a34,000 Employer\u2019s National Insurance allowance remains in force for the 2021-22 year.&nbsp; This means that for you don\u2019t pay Employer\u2019s National Insurance for the first \u00a34,000 in the tax year.<\/p>\n\n\n\n<p id=\"block-6522ca79-baca-473e-91e8-85955a2e3298\">Unfortunately, this does not apply to companies such as those which only employ one director and no other staff.&nbsp; There are also some other exceptions such as those that work in the public sector.&nbsp; To check if you\u2019re eligible please visit&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/www.gov.uk\/claim-employment-allowance\" target=\"_blank\">https:\/\/www.gov.uk\/claim-employment-allowance<\/a>.<\/p>\n\n\n\n<p id=\"block-590181f7-8482-4d01-8e4e-7673230a1fcb\">If you have any benefits through work, such as healthcare or a company car, the employer must also pay Class 1A national insurance at 13.8% on those benefits.&nbsp; To find out more and check if you need to pay this please visit&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/www.gov.uk\/employer-reporting-expenses-benefits\/overview\" target=\"_blank\">https:\/\/www.gov.uk\/employer-reporting-expenses-benefits\/overview<\/a>.<\/p>\n\n\n\n<p id=\"block-2df30918-435a-47a0-a847-633f2d2820e6\"><strong>Director\u2019s Salaries<\/strong><\/p>\n\n\n\n<p id=\"block-3f5f0ead-3a8b-463c-8ed4-8be7570f299d\">If you are a director who has a salary and takes dividends, we would recommend that the optimal salary to take for the 2021-22 tax year is \u00a3735 per month.&nbsp; This puts you in the LEL category (whereby you are deemed to have paid national insurance) but just below the PT category (whereby you actually pay national insurance).&nbsp; This will use up most of your personal allowance, reduce your corporation tax liability by around \u00a31,675 and will protect your state pension.<\/p>\n\n\n\n<p id=\"block-7ac86da9-dcb5-47f5-bb1d-005564d0296a\">To find out in more detail about 2021-22 rates and allowances please visit <a rel=\"noreferrer noopener\" href=\"https:\/\/www.gov.uk\/guidance\/rates-and-thresholds-for-employers-2021-to-2022\" target=\"_blank\">https:\/\/www.gov.uk\/guidance\/rates-and-thresholds-for-employers-2021-to-2022<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>You can only make National Insurance deductions on earnings above the Lower Earnings Limit (LEL).&nbsp; These rates are being frozen until April 2026. Class 1 National Insurance Thresholds 2021 to 2022 &nbsp;LEL&nbsp; \u00a3120 per week\u00a3520 per month\u00a36,240 per year &nbsp;Primary Threshold (PT) \u00a3184 per week\u00a3797 per month\u00a39,568 per year &nbsp;Secondary Threshold (ST) \u00a3170 per week\u00a3737 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":431,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","jnews-multi-image_gallery":[],"jnews_single_post":{"subtitle":"","format":"standard","video":"","gallery":"","source_name":"","source_url":"","via_name":"","via_url":"","override":[{"template":"1","single_blog_custom":"","parallax":"1","fullscreen":"1","layout":"right-sidebar","sidebar":"default-sidebar","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"top","share_float_style":"share-monocrhome","show_share_counter":"1","show_view_counter":"1","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_category":"1","post_reading_time_wpm":"300","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"1","show_prev_next_post":"1","show_popup_post":"1","number_popup_post":"1"}],"image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post_position":"meta","trending_post_label":"Trending","sponsored_post_label":"Sponsored by","sponsored_post_name":"","sponsored_post_url":"","sponsored_post_logo":"","sponsored_post_desc":""},"jnews_primary_category":{"id":"53"},"footnotes":""},"categories":[53],"tags":[],"class_list":["post-549","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national-insurance"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>2021\/2022 National Insurance Thresholds and Rates - Accountants247 Glasgow South<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/accountants247glasgowsouth.co.uk\/?p=549\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"2021\/2022 National Insurance Thresholds and Rates - Accountants247 Glasgow South\" \/>\n<meta property=\"og:description\" content=\"You can only make National Insurance deductions on earnings above the Lower Earnings Limit (LEL).&nbsp; These rates are being frozen until April 2026. Class 1 National Insurance Thresholds 2021 to 2022 &nbsp;LEL&nbsp; \u00a3120 per week\u00a3520 per month\u00a36,240 per year &nbsp;Primary Threshold (PT) \u00a3184 per week\u00a3797 per month\u00a39,568 per year &nbsp;Secondary Threshold (ST) \u00a3170 per week\u00a3737 [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/accountants247glasgowsouth.co.uk\/?p=549\" \/>\n<meta property=\"og:site_name\" content=\"Accountants247 Glasgow South\" \/>\n<meta property=\"article:published_time\" content=\"2021-07-09T10:04:55+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-07-09T10:05:10+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/accountants247glasgowsouth.co.uk\/wp-content\/uploads\/2021\/05\/networking-events.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1140\" \/>\n\t<meta property=\"og:image:height\" content=\"760\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Pete\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Pete\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/accountants247glasgowsouth.co.uk\/?p=549\",\"url\":\"https:\/\/accountants247glasgowsouth.co.uk\/?p=549\",\"name\":\"2021\/2022 National Insurance Thresholds and Rates - 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Class 1 National Insurance Thresholds 2021 to 2022 &nbsp;LEL&nbsp; \u00a3120 per week\u00a3520 per month\u00a36,240 per year &nbsp;Primary Threshold (PT) \u00a3184 per week\u00a3797 per month\u00a39,568 per year &nbsp;Secondary Threshold (ST) \u00a3170 per week\u00a3737 [&hellip;]","og_url":"https:\/\/accountants247glasgowsouth.co.uk\/?p=549","og_site_name":"Accountants247 Glasgow South","article_published_time":"2021-07-09T10:04:55+00:00","article_modified_time":"2021-07-09T10:05:10+00:00","og_image":[{"width":1140,"height":760,"url":"https:\/\/accountants247glasgowsouth.co.uk\/wp-content\/uploads\/2021\/05\/networking-events.jpg","type":"image\/jpeg"}],"author":"Pete","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Pete","Estimated reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/accountants247glasgowsouth.co.uk\/?p=549","url":"https:\/\/accountants247glasgowsouth.co.uk\/?p=549","name":"2021\/2022 National Insurance Thresholds and Rates - 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