National Insurance contributions (NIC) - rates and allowances
TAB_TITLE 1
- Employees start paying Class 1 NIC from age 16 (if sufficient earnings).
- Employers pay Class 1 NIC in accordance with the table below.
- Employer NIC for employees under the age of 21 and apprentices under the age of 25 is reduced from the normal rate of 13.8% to 0% up to the Upper Secondary Threshold.
- Employees' Class 1 NIC stop when they reach their State Pension age. The employer's contribution continues.
Employees - Class 1 - 2019/20
| Earnings per week | % |
|---|---|
| Up to £166 | Nil |
| £166.01 - £962 | 12 |
| Over £962 | 2 |
Entitlement to state pension and other contribution-based benefits is retained for earnings between £118 and £166 per week.
Employers - Class 1 - 2019/20
| Earnings per week | % |
|---|---|
| Up to £166 | Nil |
| Over £166 | 13.8 |
| Upper Secondary Threshold (for under 21s and apprentices under 25) Up to £962 |
0% |
Other National Insurance payable by employers
Class 1A - 13.8% on broadly all taxable benefits provided to employees
Class 1B - 13.8% on PAYE Settlement Agreements
Self-employed - Class 2 and 4
- A self-employed person starts paying Class 2 and Class 4 NIC from 16 or over (if sufficient profits)
- Class 2 NIC stop when a person reaches State Pension age
- Class 4 NIC stop from the start of the tax year after the one in which the person reaches State Pension age.
Self-employed - Class 2 - 2019/20
| Flat rate per week | £3.00 |
| Small Profits Threshold | £6,365 per year |
No Class 2 is due if the amount of trading profits assessable to income tax and Class 4 NIC is below this figure. However, a person might decide to carry on paying Class 2 voluntarily to accrue entitlement to the State Pension and entitlement to other benefits.
Class 4 - 2019/20
| Annual profits | % |
|---|---|
| Up to £8,632 | Nil |
| £8,632.01 - £50,000 | 9 |
| Over £50,000 | 2 |
Class 3
- A person needs 35 years (30 years if State Pension age is before 6 April 2016) of NIC to get a full State Pension.
- Class 3 voluntary contributions can be paid to fill or avoid gaps in a NI record.
Class 3 - 2019/20
Flat rate per week £15.00
2018/19
- Employees start paying Class 1 NIC from age 16 (if sufficient earnings).
- Employers pay Class 1 NIC in accordance with the table below.
- Employer NIC for employees under the age of 21 and apprentices under the age of 25 is reduced from the normal rate of 13.8% to 0% up to the Upper Secondary Threshold.
- Employees' Class 1 NIC stop when they reach their State Pension age . The employer's contribution continues.
Employees - Class 1 - 2018/19
| Earnings per week | % |
|---|---|
| Up to £162 | Nil* |
| £162.01 - £892 | 12 |
| Over £892 | 2 |
* Entitlement to state pension and other contribution-based benefits is retained for earnings between £116 and £162 per week.
Employers - Class 1 - 2018/19
| Earnings per week | % |
|---|---|
| Up to £162 | Nil |
| Over £162 | 13.8 |
| Upper Secondary Threshold (for under 21s and apprentices under 25) Up to £892 |
0% |
Other National Insurance payable by employers
Class 1A - 13.8% on broadly all taxable benefits provided to employees
Class 1B - 13.8% on PAYE Settlement Agreements
Self-employed - Class 2 and 4
- A self-employed person starts paying Class 2 and Class 4 NIC from 16 or over (if sufficient profits)
- Class 2 NIC stop when a person reaches State Pension age
- Class 4 NIC stop from the start of the tax year after the one in which the person reaches State Pension age.
Self-employed - Class 2 - 2018/19
| Flat rate per week | £2.95 |
| Small Profits Threshold* | £6,205 per year |
* No Class 2 is due if the amount of trading profits assessable to income tax and Class 4 NIC is below this figure. However, a person might decide to carry on paying Class 2 voluntarily to accrue entitlement to the State Pension and entitlement to other benefits.
Class 4 - 2018/19
| Annual profits | % |
|---|---|
| Up to £8,424 | Nil |
| £8,424.01 - £46,350 | 9 |
| Over 46,350 | 2 |
Class 3
- A person needs 35 years (30 years if State Pension age is before 6 April 2016) of NIC to get a full State Pension.
- Class 3 voluntary contributions can be paid to fill or avoid gaps in a NI record.
Class 3 - 2018/19
Flat rate per week £14.65