National Insurance Contributions

Class 1 Employees not contracted-out of state second pension (S2P)
15/16EmployeeEmployer
NICs rate12%13.8%
No NICs on the ?rst– Under 21£155 pw£815 pw
– 21 and over£155 pw£156 pw
NICs charged up to£815 pwNo limit
2% NICs on earnings over£815 pwN/A
Certain married women5.85%13.8%
Employment Allowance per business£2,000
Contracted-Out rebate on
£112– £770 pw (salary related scheme)1.4%3.4%
Limits and ThresholdsWeeklyMonthlyAnnual
Lower earnings limit£112£486£5,824
Primary earnings threshold£155£672£8,060
Secondary earnings threshold£156£676£8,112
Upper accrual point£770£3,337£40,040
Upper earnings limit and upper
secondary earnings threshold (under 21)£815£3,532£42,385
Class 1A Employer On most taxable benefits in kind13.8%
Class 1B Employer On PAYE settlement agreements13.8%
Self-Employed Class 2 Flat rate£2.80 pw£145.60 pa
Self-Employed Small profits threshold£5,965 pa
Self-Employed Class 4 On profits£8,060–£42,385 pa9%
Over £42,385 pa2%
Class 3 Voluntary Flat rate£14.10 pw£733.20 pa
Class 3A Voluntary (from 12/10/15)Amount depending on age
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