The government has confirmed that for the 2020/21 tax year, National Insurance Contribution thresholds will increase to £9,500 per year.
A typical employee will save an amount of approximately £104 in 2020/21, and the self-employed will save £78.
Upper NIC thresholds will remain at £50,000, whereas all other thresholds will rise with inflation.
Employers (secondary) thresholds on national insurance will also see a rise from £719 per month to £732 per month. For many small business owner managers who take a mix of salary and dividends from their businesses, this will become the optimal salary.
As with all of our tax tips and web pages this information is necessarily summarised and of a general nature. If you would like detailed specific advice please contact us