National Insurance Contributions (Increase of Thresholds) Act 2022
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-1"><num>1</num><heading>Increase of primary threshold for primary Class 1 contributions</heading><subsection eId="section-1-1"><num>(1)</num><content><p>The Social Security (Contributions) Regulations 2001 (<ref eId="c00001" href="http://www.legislation.gov.uk/id/uksi/2001/1004">S.I. 2001/1004</ref>) are amended as follows.</p></content></subsection><subsection eId="section-1-2"><num>(2)</num><content><p><mod>In regulation 10(c) (primary threshold) for “£190” substitute <quotedText>“£242”</quotedText>.</mod></p></content></subsection><subsection eId="section-1-3"><num>(3)</num><intro><p>In regulation 11(3) (prescribed equivalents)—</p></intro><level class="para1" eId="section-1-3-a"><num>(a)</num><content><p><mod>in sub-paragraph (a), for “£823” substitute <quotedText>“£1,048”</quotedText>;</mod></p></content></level><level class="para1" eId="section-1-3-b"><num>(b)</num><content><p><mod>in sub-paragraph (b), for “£9,880” substitute <quotedText>“£12,570”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-1-4"><num>(4)</num><content><p>The amendments made by subsections <ref href="#section-1-2">(2)</ref> and <ref href="#section-1-3">(3)</ref> come into force on 6 July 2022 (and accordingly do not affect any liability to primary Class 1 contributions for any tax week commencing before that date).</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-1-1"><num>(1)</num><content><p>The Social Security (Contributions) Regulations 2001 (<ref eId="c00001" href="http://www.legislation.gov.uk/id/uksi/2001/1004">S.I. 2001/1004</ref>) are amended as follows.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-1-2"><num>(2)</num><content><p><mod>In regulation 10(c) (primary threshold) for “£190” substitute <quotedText>“£242”</quotedText>.</mod></p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-1-3"><num>(3)</num><intro><p>In regulation 11(3) (prescribed equivalents)—</p></intro><level class="para1" eId="section-1-3-a"><num>(a)</num><content><p><mod>in sub-paragraph (a), for “£823” substitute <quotedText>“£1,048”</quotedText>;</mod></p></content></level><level class="para1" eId="section-1-3-b"><num>(b)</num><content><p><mod>in sub-paragraph (b), for “£9,880” substitute <quotedText>“£12,570”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-1-3-a"><num>(a)</num><content><p><mod>in sub-paragraph (a), for “£823” substitute <quotedText>“£1,048”</quotedText>;</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-1-3-b"><num>(b)</num><content><p><mod>in sub-paragraph (b), for “£9,880” substitute <quotedText>“£12,570”</quotedText>.</mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-1-4"><num>(4)</num><content><p>The amendments made by subsections <ref href="#section-1-2">(2)</ref> and <ref href="#section-1-3">(3)</ref> come into force on 6 July 2022 (and accordingly do not affect any liability to primary Class 1 contributions for any tax week commencing before that date).</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-2"><num>2</num><heading>Increase in lower limit of profits for Class 4 contributions</heading><subsection eId="section-2-1"><num>(1)</num><intro><p>In sections 15(3)(a) and 18(1)(c) and (1A)(a) of—</p></intro><level class="para1" eId="section-2-1-a"><num>(a)</num><content><p>the Social Security Contributions and Benefits Act 1992, and</p></content></level><level class="para1" eId="section-2-1-b"><num>(b)</num><content><p>the Social Security Contributions and Benefits (Northern Ireland) Act 1992,</p></content></level><wrapUp><p><mod>for “<term refersTo="#term-9880" eId="term-9880">£9,880</term>” (the lower limit of profits) substitute <quotedText>“£11,908”</quotedText>.</mod></p></wrapUp></subsection><subsection eId="section-2-2"><num>(2)</num><content><p>The amendments made by subsection <ref href="#section-2-1">(1)</ref> are treated as having come into force on 6 April 2022.</p></content></subsection><subsection eId="section-2-3"><num>(3)</num><content><p>In those sections, for “<term refersTo="#term-11908" eId="term-11908">£11,908</term>” (as substituted by subsection <ref href="#section-2-1">(1)</ref>) substitute “£12,570”.</p></content></subsection><subsection eId="section-2-4"><num>(4)</num><content><p>The amendments made by subsection <ref href="#section-2-3">(3)</ref> come into force on 6 April 2023.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-2-1"><num>(1)</num><intro><p>In sections 15(3)(a) and 18(1)(c) and (1A)(a) of—</p></intro><level class="para1" eId="section-2-1-a"><num>(a)</num><content><p>the Social Security Contributions and Benefits Act 1992, and</p></content></level><level class="para1" eId="section-2-1-b"><num>(b)</num><content><p>the Social Security Contributions and Benefits (Northern Ireland) Act 1992,</p></content></level><wrapUp><p><mod>for “<term refersTo="#term-9880" eId="term-9880">£9,880</term>” (the lower limit of profits) substitute <quotedText>“£11,908”</quotedText>.</mod></p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-2-1-a"><num>(a)</num><content><p>the Social Security Contributions and Benefits Act 1992, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-2-1-b"><num>(b)</num><content><p>the Social Security Contributions and Benefits (Northern Ireland) Act 1992,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-2-2"><num>(2)</num><content><p>The amendments made by subsection <ref href="#section-2-1">(1)</ref> are treated as having come into force on 6 April 2022.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-2-3"><num>(3)</num><content><p>In those sections, for “<term refersTo="#term-11908" eId="term-11908">£11,908</term>” (as substituted by subsection <ref href="#section-2-1">(1)</ref>) substitute “£12,570”.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-2-4"><num>(4)</num><content><p>The amendments made by subsection <ref href="#section-2-3">(3)</ref> come into force on 6 April 2023.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-3"><num>3</num><heading>Equivalent provision for Class 2 contributions</heading><subsection eId="section-3-1"><num>(1)</num><intro><p>The Treasury must by regulations make provision for the purpose of securing that, for the purposes of—</p></intro><level class="para1" eId="section-3-1-a"><num>(a)</num><content><p>the Social Security Contributions and Benefits Act 1992, and</p></content></level><level class="para1" eId="section-3-1-b"><num>(b)</num><content><p>the Social Security Contributions and Benefits (Northern Ireland) Act 1992,</p></content></level><wrapUp><p>the threshold for paying Class 2 contributions for a tax year is equivalent to the threshold at which Class 4 contributions become payable for that year.</p></wrapUp></subsection><subsection eId="section-3-2"><num>(2)</num><intro><p>Regulations under this section may—</p></intro><level class="para1" eId="section-3-2-a"><num>(a)</num><content><p>also make provision having the effect that, in such circumstances as may be provided for, a person whose profits for a tax year are less than that threshold is treated as making Class 2 contributions;</p></content></level><level class="para1" eId="section-3-2-b"><num>(b)</num><content><p>make provision having retrospective effect from no earlier than 6 April 2022;</p></content></level><level class="para1" eId="section-3-2-c"><num>(c)</num><content><p>amend an Act of Parliament.</p></content></level></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-3-1"><num>(1)</num><intro><p>The Treasury must by regulations make provision for the purpose of securing that, for the purposes of—</p></intro><level class="para1" eId="section-3-1-a"><num>(a)</num><content><p>the Social Security Contributions and Benefits Act 1992, and</p></content></level><level class="para1" eId="section-3-1-b"><num>(b)</num><content><p>the Social Security Contributions and Benefits (Northern Ireland) Act 1992,</p></content></level><wrapUp><p>the threshold for paying Class 2 contributions for a tax year is equivalent to the threshold at which Class 4 contributions become payable for that year.</p></wrapUp></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-3-1-a"><num>(a)</num><content><p>the Social Security Contributions and Benefits Act 1992, and</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-3-1-b"><num>(b)</num><content><p>the Social Security Contributions and Benefits (Northern Ireland) Act 1992,</p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-3-2"><num>(2)</num><intro><p>Regulations under this section may—</p></intro><level class="para1" eId="section-3-2-a"><num>(a)</num><content><p>also make provision having the effect that, in such circumstances as may be provided for, a person whose profits for a tax year are less than that threshold is treated as making Class 2 contributions;</p></content></level><level class="para1" eId="section-3-2-b"><num>(b)</num><content><p>make provision having retrospective effect from no earlier than 6 April 2022;</p></content></level><level class="para1" eId="section-3-2-c"><num>(c)</num><content><p>amend an Act of Parliament.</p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-3-2-a"><num>(a)</num><content><p>also make provision having the effect that, in such circumstances as may be provided for, a person whose profits for a tax year are less than that threshold is treated as making Class 2 contributions;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-3-2-b"><num>(b)</num><content><p>make provision having retrospective effect from no earlier than 6 April 2022;</p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-3-2-c"><num>(c)</num><content><p>amend an Act of Parliament.</p></content></level>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-4"><num>4</num><heading>Transitional and consequential provision</heading><subsection eId="section-4-1"><num>(1)</num><content><p>Regulation 21 of the Social Security (Contributions) Regulations 2001 (annual maxima for Class 1 contributions etc for those with more than one employment) has effect as if the primary threshold were £229.</p></content></subsection><subsection eId="section-4-2"><num>(2)</num><intro><p>Those regulations have effect in relation to an earnings period specified in regulation 8(2) to (5) of those regulations (earnings periods for directors) as if—</p></intro><level class="para1" eId="section-4-2-a"><num>(a)</num><content><p><mod>for the amount specified in regulation 10(c) there were substituted <quotedText>“£229”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-4-2-b"><num>(b)</num><content><p><mod>for the amount specified in regulation 11(3)(b) there were substituted <quotedText>“£11,908”</quotedText>.</mod></p></content></level></subsection><subsection eId="section-4-3"><num>(3)</num><content><p>The modifications made by subsections <ref href="#section-4-1">(1)</ref> and <ref href="#section-4-2">(2)</ref> have effect for the tax year 2022-23.</p></content></subsection><subsection eId="section-4-4"><num>(4)</num><content><p>The Treasury may by regulations make such provision (including provision having retrospective effect from no earlier than 6 April 2022) amending or otherwise modifying the Social Security (Contributions) Regulations 2001 as they consider appropriate in consequence of provision made by or under this Act.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-4-1"><num>(1)</num><content><p>Regulation 21 of the Social Security (Contributions) Regulations 2001 (annual maxima for Class 1 contributions etc for those with more than one employment) has effect as if the primary threshold were £229.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-4-2"><num>(2)</num><intro><p>Those regulations have effect in relation to an earnings period specified in regulation 8(2) to (5) of those regulations (earnings periods for directors) as if—</p></intro><level class="para1" eId="section-4-2-a"><num>(a)</num><content><p><mod>for the amount specified in regulation 10(c) there were substituted <quotedText>“£229”</quotedText>, and</mod></p></content></level><level class="para1" eId="section-4-2-b"><num>(b)</num><content><p><mod>for the amount specified in regulation 11(3)(b) there were substituted <quotedText>“£11,908”</quotedText>.</mod></p></content></level></subsection>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-4-2-a"><num>(a)</num><content><p><mod>for the amount specified in regulation 10(c) there were substituted <quotedText>“£229”</quotedText>, and</mod></p></content></level>
<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-4-2-b"><num>(b)</num><content><p><mod>for the amount specified in regulation 11(3)(b) there were substituted <quotedText>“£11,908”</quotedText>.</mod></p></content></level>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-4-3"><num>(3)</num><content><p>The modifications made by subsections <ref href="#section-4-1">(1)</ref> and <ref href="#section-4-2">(2)</ref> have effect for the tax year 2022-23.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-4-4"><num>(4)</num><content><p>The Treasury may by regulations make such provision (including provision having retrospective effect from no earlier than 6 April 2022) amending or otherwise modifying the Social Security (Contributions) Regulations 2001 as they consider appropriate in consequence of provision made by or under this Act.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-5"><num>5</num><heading>Regulations</heading><subsection eId="section-5-1"><num>(1)</num><content><p>Regulations under this Act are to be made by statutory instrument.</p></content></subsection><subsection eId="section-5-2"><num>(2)</num><content><p>Subsections (3) and (4) of section 175 of the Social Security Contributions and Benefits Act 1992 (provision which may be made by regulations) apply to regulations under this Act as they apply to regulations under that Act.</p></content></subsection><subsection eId="section-5-3"><num>(3)</num><content><p>A statutory instrument containing (whether alone or with other provision) regulations under section 3 that amend an Act of Parliament may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.</p></content></subsection><subsection eId="section-5-4"><num>(4)</num><content><p>Otherwise, a statutory instrument containing regulations under this Act is subject to annulment in pursuance of a resolution of either House of Parliament.</p></content></subsection></section>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-5-1"><num>(1)</num><content><p>Regulations under this Act are to be made by statutory instrument.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-5-2"><num>(2)</num><content><p>Subsections (3) and (4) of section 175 of the Social Security Contributions and Benefits Act 1992 (provision which may be made by regulations) apply to regulations under this Act as they apply to regulations under that Act.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-5-3"><num>(3)</num><content><p>A statutory instrument containing (whether alone or with other provision) regulations under section 3 that amend an Act of Parliament may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.</p></content></subsection>
<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-5-4"><num>(4)</num><content><p>Otherwise, a statutory instrument containing regulations under this Act is subject to annulment in pursuance of a resolution of either House of Parliament.</p></content></subsection>
<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-6"><num>6</num><heading>Short title</heading><content><p>This Act may be cited as the National Insurance Contributions (Increase of Thresholds) Act 2022.</p></content></section>