Commentary on provisions of the Act Section 2: Secondary threshold for secondary Class 1 contributions
Section 2(1) introduces amendments to S.I. 2001/1004.
	Section 2(2) amends regulation 10(d) of S.I. 2001/1004 by changing the weekly secondary threshold for secondary Class 1 NICs from £175 to £96.
	Prescribed equivalents ensure the threshold is reflective of an employment pay period. Section 2(3) amends regulation 11(3A) of S.I. 2001/1004 by replacing the monthly and annual prescribed equivalents of the secondary threshold as follows:
In sub-paragraph (a), the monthly prescribed equivalent of £758, is replaced with £417.
In sub-paragraph (b), the yearly prescribed equivalent of £9,100, is replaced with £5,000.
	Section 2(4) specifies the changes made by this section apply for the tax year 2025-2026 only.