National Insurance Contributions

2024 – 2025

Class 1 (earnings related)
Employees
Weekly Earnings	Rate
Up to £242	0%
£242.01 – £967	8%
Over £967	2%

Employers
Weekly Earnings	Rate
Up to £175	0%
Over £175	13.8%

Employment Allowance
£5,000 per employer (where employer NIC bill does not exceed £100,000)

Class 1A	(employers on benefits in kind): 13.8%
Class 1B (employers)	(employers on PAYE Settlement Agreements): 13.8%
Class 2 (self-employed)	(self-employed): £3.45 per week (£179.40 per year)
Class 3 (voluntary contributions)	(voluntary contributions): £17.45 per week (£907.40 per year
Class 4 (self-employed)	0% on profits between £12,570 – £50,270 6% on profits between £12,570 – £50,270 2% on profits over £50,270

2022 – 2023

Class 1 (earnings related)
Employees
Weekly Earnings	Rate
First £242	Nill
£242,01 – £967	13%
Over £967	3.25%
Lower earnings limit per week	£190

Employers
Weekly Earnings	Rate
First £175	Nill
Over £170	15.05%

Employment Allowance
£5,000 per employer (where employer NIC bill does not exceed £100,000)

Class 1A	£15.05
Class 2 (self-employed)	£3.15 per week Small profit threshold £6,725
Class 3 (voluntary contributions)	15.85%
Class 4 (self-employed)	10.25% Profits for £11,908 – £50270

2021 – 2022

Class 1 (earnings related)
Employees
Weekly Earnings	Rate
First £184	0%
£184,01 – £967	12%
Over £967	2%
Lower earnings limit per week	£120

Employers
Weekly Earnings	Rate
First £170	0%
Over £170	13.8%

Employment Allowance
£4,000 per employer (where employer NIC bill does not exceed £100,000)

Class 1A & Class 1B	£3.05 per week Small profit threshold £6,515
Class 2 (self-employed)	£15.40 per week
Class 3 (voluntary contributions)	9% Profits between £9,568 – £50,270
Class 4 (self-employed)	2% Profits over £50,270

If you are looking at National Insurance Contributions or planning your finances, please feel free to contact us. We can discuss your specific circumstances to help you plan tax efficiently.

2020 - 2021

Class 1 (not contracted out)	Employer	Employee
Payable on weekly earnings of
Up to £120 (Lower Earnings Limit)	Nil	Nil
*£120 - £183 (Primary Threshold) (see note)**	Nil	Nil
£183 - £962 (Upper Earnings Limit)	13.8%	12%
Over £962	13.8%	2%
Employment allowance (per employer, per year)**	£4,000	Nil
Over State Retirement Age, the employee contribution is generally Nil
Class 1A (on relevant benefits)	13.8%	Nil
Class 1B (on PAYE settlement arrangement)	13.8%	Nil
Class 2 (Self-employed)	£3.05 per week
Limit of net earnings for class 2 exception	£6,465 per annum
Class 3 (Voluntary)	£15.30 per week
Class 4* (Self-employed on profits)**
£9,500 - £50,000	9%
Excess over £50,000	2%

*Secondary Threshold (ST) Employers start paying National Insurance from £169.

** With effect from 6th April 2016, companies are no longer able to reclaim the Employment Allowance where the director is the sole employee.

***Exemption applies if State Retirement Age was reached by 6 April 2018.

2019 - 2020

Class 1 (not contracted out)	Employer	Employee
Payable on weekly earnings of
Up to £118 (Lower Earnings Limit)	Nil	Nil
£118 - £166 (Primary Threshold)	Nil	Nil
£166 - £962 (Upper Earnings Limit)	13.8%	12%
Over £962	13.8%	2%
Employment allowance (per employer, per year)**	£3,000	Nil
Over State Retirement Age, the employee contribution is generally Nil
Class 1A (on relevant benefits)	13.8%	Nil
Class 1B (on PAYE settlement arrangement)	13.8%	Nil
Class 2 (Self-employed)	£3.00 per week
Limit of net earnings for class 2 exception	£6,365 per annum
Class 3 (Voluntary)	£15.00 per week
*Class 4 (Self-employed on profits)**
£8,632 - £50,000	9%
Excess over £50,000	2%
*Exemption applies if State Retirement Age was reached by 6 April 2018.
** With effect from 6th April 2016, companies are no longer able to reclaim the Employment Allowance where the director is the sole employee.

2018-19

Class 1 (not contracted out)	Employer	Employee
Payable on weekly earnings of
Up to £116 (Lower Earnings Limit)	Nil	Nil
£116 - £162 (Primary Threshold)	Nil	Nil
£162 - £892 (Upper Earnings Limit)	13.8%	12%
Over £892	13.8%	2%
Employment allowance (per employer, per year)**	£3,000	Nil
Over State Retirement Age, the employee contribution is generally Nil
Class 1A (on relevant benefits)	13.8%	Nil
Class 1B (on PAYE settlement arrangement)	13.8%	Nil
Class 2 (Self-employed)	£2.95 per week
Limit of net earnings for class 2 exception	£6,205 per annum
Class 3 (Voluntary)	£14.65 per week
*Class 4 (Self-employed on profits)**
£8,424 - £46,350	9%
Excess over £46,350	2%
*Exemption applies if State Retirement Age was reached by 6 April 2018.
** With effect from 6th April 2016, companies are no longer able to reclaim the Employment Allowance where the director is the sole employee.

With effect from 6th April 2015, no employer’s National insurance contributions are due for employees aged under 21 on earnings up to the Upper Secondary Threshold. From 6th April 2016, no employer’s National insurance contributions are due for apprentices up to 25, up to the Upper Secondary Threshold.

Please contact us for further information.

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