National Insurance Contributions (NICs)
In a change to the government’s previous plans, Class 2 NICs are no longer set to be abolished from April 2019.
| 2019/20 Class 1 (employed) rates | |||
|---|---|---|---|
| Employee | Employer | ||
| Earnings per week | % | Earnings per week | % |
| Up to £166 | 0 | Up to £166 | 0 |
| £166.01 - £962 | 12 | Over £166 | 13.8 |
| Over £962 | 2 | ||
|
Entitlement to contribution-based benefits for employees retained for earnings between £118.01 and £166 per week. The employer rate is 0% for employees under 21 and apprentices under 25 on earnings up to £962 per week. |
|||
| Class 1A (employers) | On employee taxable benefits | 13.8% | |
| Class 1B (employers) | On PAYE Settlement Agreements | 13.8% | |
| Class 2 (self-employed) |
Flat rate per week Small profits threshold |
£3.00 £6,365 per annum |
|
| Class 3 (voluntary) | Flat rate per week | £15.00 per week | |
| Class 4 (self-employed) |
On profits between £8,632 - £50,000 Excess over £50,000 |
9% 2% |
|