National Insurance Contributions

Class 12016/172015/16
EmployeeEmployerEmployeeEmployer
NIC rate12%13.8%12%13.8%
No NICs (under 21*) on the first£155 pw£827 pw£155 pw£815 pw
No NICs (21 and over*) on the first£155 pw£156 pw£155 pw£156 pw
NICs rate charged up to£827 pwNo limit£815 pwNo limit
2% NICs on earnings over£827 pwN/A£815 pwN/A
Certain married women5.85%13.8%5.85%13.8%
* For 2016/17, 25 for apprentices.
Contracted-out rebate on salary-related scheme
2016/172015/16
Reduction on band earningsN/A£112-£770 pw
Employer rate reductionN/A3.4%
Employee rate reductionN/A1.4%
Employment allowance2016/172015/16
Payable per business – not available in 2016/17 if a director is the sole employee£3,000£2,000
Earnings limits and thresholds2016/172015/16
Weekly Monthly Annual
Weekly
Monthly
Annual
££££££
Lower earnings limit1124865,8241124865,824
Primary earnings threshold1556728,0601556728,060
Secondary earnings threshold1566768,1121566768,112
Upper earnings limit and upper secondary threshold (under 21*)8273,58343,0008153,53242,385
* For 2016/17, 25 for apprentices.
Class 1A Employer
2016/172015/16
On car & fuel benefits and most other taxable benefits13.8%13.8%
Self-employed Class 2
2016/172015/16
Flat rate£2.80 pw
£145.60 pa

£2.80 pw
£145.60 pa

Self-employed2016/172015/16
Small profits threshold£5,965 pa£5,965 pa
Self-employed Class 4
2016/172015/16
On profits£8,060-£43,000 pa: 9%£8,060-£42,385 pa: 9%
Over £43,000 pa: 2%Over £42,385 pa: 2%
Class 32016/172015/16
Flat rate£14.10 pw
£733.20 pa
£14.10 pw
£733.20 pa
Class 3A
If reached state pension age before 6/4/16, amount depending on age.
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