National Insurance Contributions (NIC) – Rates And Allowances
- 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 to 0% up to the Upper Secondary Threshold of £967 per week. Also applies to veterans in the first 12 months of employment.
- Employees’ Class 1 NIC stop when they reach their State Pension age. The employer’s contribution continues.
Employees – Class 1 – 2024/25
| Earnings per week | % |
|---|---|
| Up to £242* | Nil |
| £242.01 – £967 | 8 |
| Over £967 | 2 |
Entitlement to state pension and other contribution-based benefits is retained for earnings between £123 and £242 per week.
Employers – Class 1 – 2024/25
| Earnings per week | % |
|---|---|
| Up to £175 | Nil |
| Over £175 | 13.80 |
Other National Insurance payable by employers
Class 1A – 13.8% on broadly all taxable benefits provided to employees and on certain taxable termination payments in excess of £30,000
Class 1B – 13.8% on taxable 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.
- From 6 April 2024, there is no longer a requirement to pay Class 2. Voluntary contributions can still be made.
- 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 – 2024/25
| Flat rate per week | £3.45 |
| Small Profits Threshold | £6,725 per year |
| Lower Profits Limit | n/a |
A self-employed person with profits below the Small Profits Threshold might decide to carry on paying Class 2 voluntarily to accrue entitlement to the State Pension and other benefits.
Class 4 – 2024/25
| Annual profits | % |
|---|---|
| Up to £12,570 | Nil |
| £12,570.01 – £50,270 | 6 |
| Over £50,270 | 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 – 2024/25
Flat rate per week £17.45
- 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 to 0% up to the Upper Secondary Threshold of £967 per week. Also applies to veterans in the first 12 months of employment.
- Employees’ Class 1 NIC stop when they reach their State Pension age. The employer’s contribution continues.
Employees – Class 1 – 2023/24
| Earnings per week | % |
|---|---|
| Up to £242* | Nil |
| £242.01 – £967 | 12 |
| Over £967 | 2 |
Entitlement to state pension and other contribution-based benefits is retained for earnings between £123 and £242 per week.
Employers – Class 1 – 2023/24
| Earnings per week | % |
|---|---|
| Up to £175 | Nil |
| Over £175 | 13.80 |
Other National Insurance payable by employers
Class 1A – 13.8% on broadly all taxable benefits provided to employees and on certain taxable termination payments in excess of £30,000
Class 1B – 13.8% on taxable 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 – 2022/23
| Flat rate per week | £3.45 |
| Small Profits Threshold | £6,725 per year |
| Lower Profits Limit | £12,570 |
For 2023/24 the point at which the self-employed person starts to pay Class 2 NICs is £12,570. This means those with profits between the Small Profits Threshold and the Lower Profits Limit will not pay Class 2 NICs, but will still be able to access entitlement to contributory benefits. A self-employed person with profits below the Small Profits Threshold might decide to carry on paying Class 2 voluntarily to accrue entitlement to the State Pension and other benefits.
Class 4 – 2023/24
| Annual profits | % |
|---|---|
| Up to £12,570 | Nil |
| £12,570.01 – £50,270 | 9 |
| Over £50,270 | 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 – 2023/24
Flat rate per week £17.45
- 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 15.05% to 0% up to the Upper Secondary Threshold of £967 per week. Also applies to veterans in the first 12 months of employment.
- Employees’ Class 1 NIC stop when they reach their State Pension age. The employer’s contribution continues.
Employees – Class 1 – 2022/23
| Earnings per week | % |
|---|---|
| Up to £190* | Nil |
| £190.01 – £967 | 13.25 |
| Over £967 | 3.25 |
* £242 from 6 July 2022
Entitlement to state pension and other contribution-based benefits is retained for earnings between £123 and £190* per week.
Employers – Class 1 – 2022/23
| Earnings per week | % |
|---|---|
| Up to £175 | Nil |
| Over £175 | 15.05 |
Other National Insurance payable by employers
Class 1A – 15.05% on broadly all taxable benefits provided to employees and on certain taxable termination and sporting testimonial payments in excess of £30,000
Class 1B – 15.05% on taxable 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 – 2022/23
| Flat rate per week | £3.15 |
| Small Profits Threshold | £6,725 per year |
| Lower Profits Limit | £11,908 |
For 2022/23 the point at which the self-employed person starts to pay Class 2 NICs will increase to £11,908. This means those with profits between the Small Profits Threshold and the Lower Profits Limit will not pay Class 2 NICs, but will still be able to access entitlement to contributory benefits. A self-employed person with profits below the Small Profits Threshold might decide to carry on paying Class 2 voluntarily to accrue entitlement to the State Pension and other benefits.
Class 4 – 2022/23
| Annual profits | % |
|---|---|
| Up to £11,908 | Nil |
| £11,908.01 – £50,270 | 10.25 |
| Over £50,270 | 3.25 |
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 – 2022/23
Flat rate per week £15.85
- 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 of £967 per week. Also applies to veterans in the first 12 months of employment.
- Employees’ Class 1 NIC stop when they reach their State Pension age. The employer’s contribution continues.
Employees – Class 1 – 2021/22
| Earnings per week | % |
|---|---|
| Up to £184 | Nil |
| £184.01 – £967 | 12 |
| Over £967 | 2 |
Entitlement to state pension and other contribution-based benefits is retained for earnings between £120 and £184 per week.
Employers – Class 1 – 2021/22
| Earnings per week | % |
|---|---|
| Up to £170 | Nil |
| Over £170 | 13.8 |
Other National Insurance payable by employers
Class 1A – 13.8% on broadly all taxable benefits provided to employees and on certain taxable termination and sporting testimonial payments in excess of £30,000
Class 1B – 13.8% on taxable 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 – 2021/22
| Flat rate per week | £3.05 |
| Small Profits Threshold | £6,515 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 – 2021/22
| Annual profits | % |
|---|---|
| Up to £9,568 | Nil |
| £9,568.01 – £50,270 | 9 |
| Over £50,270 | 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 – 2021/22
Flat rate per week £15.40
Tax Rates & Allowances
- Introduction
- Capital Allowances – Plant And Machinery
- Capital Gains Tax (CGT)
- Car Benefits
- Car Fuel Benefit
- Cars – Advisory Fuel Rates For Company Cars
- Child Benefit
- Corporation Tax Rates
- Employee’s Statutory Payments
- Income Tax Allowances
- Income Tax Rates – Across the UK
- Income Tax Rates – Scotland
- Income Tax Rates – Wales
- Individual Savings Account (ISA)
- Inheritance Tax (IHT)
- Land and Buildings Transaction Tax
- Land Transaction Tax
- Mileage Allowance Payments (MAPS) For Employees
- Minimum Wage
- National Insurance Contributions (NIC) – Rates And Allowances
- Pensions Automatic Enrolment
- Pensions – Tax Relief On Pension Contributions
- Property Allowance
- Self Assessment – Key Dates
- Stamp Duty
- Stamp Duty Land Tax (SDLT)
- State Pensions
- Tax Reliefs For Individuals
- Trade Allowance
- Van Benefit
- VAT
- Vat Fuel Scale Charges
- Vehicle Excise Duty (VED) – Passenger Cars