NIM01535 - Class 1 Structural Overview: zero-rate of secondary NICs for Freeport and Investment Zone employees: Freeport Upper Secondary Threshold (FUST) and Investment Zone Upper Secondary Threshold (IZUST)
Section 1(2)(a) and 8 of the National Insurance Contributions Act (NICA) 2022
From April 2022, a new secondary Class 1 threshold was introduced for Freeport employers. This is called the Freeport Upper Secondary Threshold (FUST).
Following the introduction of Investment Zones,Ìýthis secondary Class 1 threshold is also availableÌýto Investment Zone employersÌýand is known as the Investment Zone Upper Secondary Threshold (IZUST).Ìý
»Ê¹ÚÌåÓýapp FUST was set at £25,000 for the 2022 to 2023 tax year and has been frozen at that rate for the 2023 to 2024, 2024 to 2025 and 2025 to 2026 tax years. »Ê¹ÚÌåÓýapp IZUST is also set at £25,000.
»Ê¹ÚÌåÓýapp FUST and IZUST cap the level of earnings at which the 0% rate of secondary Class 1 NICs applies. Earnings above this threshold will be assessed at the main secondary Class 1 rate of National Insurance. Primary Class 1 NICs remain unchanged.
»Ê¹ÚÌåÓýapp prescribed equivalentsÌýare:
- £481 per week
- £2,083 per month
You can find the NICs category letters for Freeport and Investment Zone employers at NIM01540.
»Ê¹ÚÌåÓýapp examples at NIM01570 demonstrate how the FUST and IZUST work.