National Insurance Contributions (Secondary Class 1 Contributions) Act 2025

• Citation: 2025 c. 11
• Sections: 4

Section 1 Rate of secondary Class 1 contributions

(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.

Section 2 Secondary threshold for secondary Class 1 contributions

(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.

Section 3 Increase of employment allowance and removal of £100,000 threshold etc

(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.

Section 4 Short title

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