The Budget 2020 – NIC Changes

Mr Sunak announced an increase in the primary threshold for NIC to £9,500 from April 2020.  He also announced an increase in the employment allowance to £4,000 per annum, although this will come in alongside the earlier announcement that employers would only be entitled to claim the allowance from April 2020 if their total secondary class 1 liability in the previous tax year was under £100,000.

A new relief will be available from April 2021 to Employers taking on veterans in their first year of civilian employment. This is being described as an NIC holiday and will exempt employers from NIC on the veteran’s salary up to the Upper Earnings limit.