The measure

With the exception of the abolition of employers' National insurance contributions (NICs) for under-21 year olds earning less than £813 per week, Class 1, Class 1A and Class 1B National Insurance rates remain unchanged. Class 4 rates are not affected by this measure. In respect of Class 1, 1A, 1B, thresholds and limits are subject to a small increase. The lower earnings limit will increase from £109 to £111 per week and the upper earnings limit will increase from £797 to £805. Class 2 NIC rates will increase to £2.75 per week. Class 3 NIC will increase to £13.90.

Who will be affected?

All employers and employees.

When?

The threshold changes will take effect from April 2014. Under-21 year old relief will come into effect from April 2015.

Our view

The introduction of the under-21 year olds relief will be a welcome boost for youth employment rates.




Research and insight

Major changes in UK tax Major changes in tax
The latest briefing paper on two major tax issues: international tax reform in the shape of BEPS, and transparency
European Tax Survey European Tax Survey
The findings of Deloitte's survey of tax professionals from almost 1,000 companies across Europe
Patent Box Patent Box
Think inside the box
UK GAAP The future of UK GAAP
What's changing?
Employment status Employment status
The challenges of engaging freelancers and temporary workers
Environmental Taxes Guide Environmental Taxes Guide
A starting point to map a business' environmental tax footprint
Sustainable tax strategy Sustainable tax strategy
Practical guide to help companies