U.K. Announces 2016-17 National Insurance Thresholds

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By Molly Ward

April 11—The weekly upper earnings limit for National Insurance contributions increased to 827 pounds ($1,179) from 815 pounds ($1,161) while contribution rates remained the same for the 2016-17 tax year effective April 6, 2016, according to an April 6 release by the United Kingdom's HM Revenue and Customs.

The monthly upper earnings limit also increased to 3,584 pounds ($5,107) from 3,532 pounds ($5,033).

Employees pay National Insurance contributions if they earn more than the primary threshold, which remains unchanged at 155 pounds ($221) a week for 2016-17, at a rate of 12 percent.

The rate drops to 2 percent of employee earnings that are greater than the upper earnings limit of 827 pounds.

To contact the reporter on this story: Molly Ward at mward@bna.com

To contact the editor responsible for this story: Michael Baer at mbaer@bna.com

For More Information

Rates and thresholds can be found at https://www.gov.uk/government/publications/rates-and-allowances-national-insurance-contributions/rates-and-allowances-national-insurance-contributions.

More information on payroll issues in the U.K. can be found in the U.K. country primer.