National Insurance Contributions

Class 1 Employees not contracted-out of state second pension (S2P)
2015/16 2014/15
Employee Employer Employee Employer
NIC rate 12% 13.8% 12% 13.8%
No NICs (under 21) on the first £155 pw £815 pw £153 pw £153 pw
No NICs (21 and over) on the first £155 pw £156 pw £153 pw £153 pw
NICs charged up to £815 pw No limit £805 pw No limit
NICs on earnings over £815 pw: 2% N/A £805 pw: 2% N/A
Certain married women 5.85% 13.8% 5.85% 13.8%
Employment allowance per business 2015/16 2014/15
Offset against employer’s Class 1 NICs £2,000 £2,000
Earnings limit or threshold 2015/16 2014/15
Weekly Monthly Annual
Weekly
Monthly
Annual
£ £ £ £ £ £
Lower earnings limit 112 486 5,824 111 481 5,772
Primary earnings threshold 155 672 8,060 153 663 7,956
Secondary earnings threshold 156 676 8,112 153 663 7,956
Upper accrual point 770 3,337 40,040 770 3,337 40,040
Upper earnings limit and upper secondary threshold (under 21) 815 3,532 42,385 805 3,489 41,865
Contracted-out S2P rebate 2015/16 2014/15
Reduction on band earnings* £112-£770 pw £111-£770 pw
Employer rate reduction 3.4% 3.4%
Employee rate reduction 1.4% 1.4%
* Salary related scheme only.
Class 1A (employers) 2015/16 2014/15
On most taxable benefits in kind 13.8% 13.8%
Class 1B (employers) 2015/16 2014/15
On PAYE settlement agreements 13.8% 13.8%
Class 2 (self-employed) 2015/16 2014/15
Flat rate £2.80 pw
£145.60 pa

£2.75 pw
£143.00 pa

Small earnings exception/small profits threshold £5,965 pa £5,885 pa
Class 4 (self-employed) 2015/16 2014/15
On profits £8,060-£42,385 pa: 9% £7,956-£41,865 pa: 9%
Over £42,385 pa: 2% Over £41,865 pa: 2%
Class 3 (voluntary) 2015/16 2014/15
Flat rate £14.10 pw
£733.20 pa
£13.90 pw
£722.80 pa
Class 3A (voluntary)
Amount depending on age
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ICAEW The Chartered Institute of Taxation ACCA IPG IR