The Social Security (Contributions) (Amendment) Regulations, SI 2022/300, modify the formulae used to calculate the NICs annual maxima, as a consequence of the 1.25 percentage point increase in NICs rates for the tax year 2022/23.
The annual maxima calculations cap the total Class1 and/or Class 4 contributions to avoid an excessive charge for individuals who have more than one employment or are also self-employed in a tax year, as a result of the relevant NICs thresholds applying separately to each employment or business.
The annual maxima formulae are set out in the Social Security Contributions Regulations, SI 2001/1004, reg 21 (Class 1) and reg 100 (Class 4).
The Social Security (Contributions) (Amendment) Regulations, SI 2022/300, modify the formulae used to calculate the NICs annual maxima, as a consequence of the 1.25 percentage point increase in NICs rates for the tax year 2022/23.
The annual maxima calculations cap the total Class1 and/or Class 4 contributions to avoid an excessive charge for individuals who have more than one employment or are also self-employed in a tax year, as a result of the relevant NICs thresholds applying separately to each employment or business.
The annual maxima formulae are set out in the Social Security Contributions Regulations, SI 2001/1004, reg 21 (Class 1) and reg 100 (Class 4).
