National Insurance Contributions (Secondary Class 1 Contributions) Act 2025

Rate of secondary Class 1 contributions

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• (1) In section 9(2) of the Social Security Contributions and Benefits Act 1992 (rate of secondary Class 1 contributions), for “13.8%” substitute “15%”.

• (2) In section 9(2) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (equivalent provision for Northern Ireland), for “13.8%” substitute “15%”.

• (3) The amendments made by this section come into force on 6 April 2025.

Secondary threshold for secondary Class 1 contributions

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• (1) The Social Security (Contributions) Regulations 2001 (S.I. 2001/1004) are amended as follows.

• (2) In regulation 10(d) (the secondary threshold for secondary Class 1 contributions), for “£175” substitute “£96”.

• (3) In regulation 11(3A) (prescribed equivalents of the secondary threshold)—

• (a) in sub-paragraph (a), for “£758” substitute “£417”, and

• (b) in sub-paragraph (b), for “£9,100” substitute “£5,000”.

• (4) The amounts substituted by this section are specified for the tax year 2025-26.

Increase of employment allowance and removal of £100,000 threshold etc

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• (1) The National Insurance Contributions Act 2014 is amended as follows.

• (2) In section 1(2)(a) (the amount of the employment allowance), for “£5,000” substitute “£10,500”.

• (3) In section 2 (exceptions), omit—

• (a) subsections (4B) to (4G) (secondary Class 1 liability limit of £100,000 or more and receipt of de minimis state aid), and

• (b) the italic heading preceding those subsections.

• (4) The amendments made by this section come into force on 6 April 2025.

Short title

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This Act may be cited as the National Insurance Contributions (Secondary Class 1 Contributions) Act 2025.