If you share information about the salary of household members, we can use this to estimate the amount of National insurance tax that you will pay, and forecast how that will change over the next 12 months.

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You can provide us with information about your household salaries and we use this as the basis for our forecast. But if we don’t, then we calculate an assumed forecast based on the median UK full-time salary.

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How our calculation works

National insurance is a tax paid as a percentage of your income, which varies in 3 bands:

  1. Below the primary threshold, you pay £0 tax
  2. Between the primary and secondary threshold, you pay the main rate.
  3. For any earnings above the secondary threshold, you pay the additional rate.

These thresholds and rates change in April and July 2022.

To calculate your NI contribution increase, we split your salary into 12 months, then for each month we break it into the 3 bands and calculate the tax you will pay in each band.

This gives us your monthly total NI contribution, which we sum over the year and compare to your NI last year to calculate your increase.

Current rates

Band Apr ‘21 - Apr ‘22 Apr ‘22 - July ‘22 July ‘22 - Apr ‘23
Below primary threshold : 0% <£797pcm : 0% <£823pcm : 0% <£1,047pcm : 0%
Primary threshold: Main rate <£4,189pcm : 12% <£4,189pcm : 13.25% <£4,189pcm : 13.25%
Secondary threshold: Additional rate >£4,189pcm : 2.5% >£4,189pcm : 3.25% >£4,189pcm : 3.25%

Assumptions we make

  1. You are paid a salary and make category A national insurance contributions.
  2. The announced increase in the lower threshold will come into effect from July 2022
    1. It is currently a bill being passed through parliament, so not confirmed
  3. Your salary was constant last year and will be next year
  4. Your salary is spread evenly over 12 months

Limitations of our calculation

Our calculation is an estimate only, and should not be relied upon. Individuals’ tax affairs can vary widely, and you should speak to an expert if you are in any doubt. More sophisticated calculators can be found online which may help you make a more detailed plan if your situation is less typical.

In particular, please note: