National Insurance Contributions (NICs)
| 2017/18 |
Employee (primary) |
Employer (secondary) |
|
|---|---|---|---|
| Class 1 | |||
| Payable on weekly earnings of: | |||
| Below £113 (lower earnings limit) | Nil | - | |
| £113 - £157 (primary threshold) | *0% | - | |
| Up to £157 (secondary threshold) | - | Nil | |
| Above £157 | - | 13.8% | |
| £157.01 - £866 (upper earnings limit) | **12% | - | |
| £157.01 - £866 (under 21s and apprentices under 25) | - | 0% | |
| Above £866 | **2% | - | |
|
*No NICs are actually payable but a notional Class 1 NIC is deemed to have been paid; this protects contributory benefit entitlement. **Over state pension age, the employee contribution is generally nil. |
|||
| Employment Allowance | Up to £3,000 (per year) | ||
| Class 1A | On relevant benefits | 13.8% | |
| Class 2 | Self employed | £2.85 per week | |
| Small profits threshold | £6,025 per annum | ||
| Class 3 | Voluntary | £14.25 per week | |
| Class 4 | Self employed on annual profits | ||
| £8,164 - £45,000 | *9% | ||
| Excess over £45,000 | *2% | ||
| *Exemption applies if state pension age was reached by 6 April 2017. | |||
Future changes
Class 2 NICs will be abolished from April 2018. The government will legislate to increase the main rate of Class 4 NICs from 9% to 10% with effect from 6 April 2018 and from 10% to 11% with effect from 6 April 2019.