National Insurance Contributions

Class 1  20/21
Employee Employer
NICs rate 12% 13.8%
No NICs for employees generally on the first £183 pw £169 pw
No NICs for younger employees* on the first £183 pw £962 pw
NICs rate charged up to £962 pw No limit
2% NICs on earnings over £962 pw N/A

 

Employment Allowance £4,000
Per business – not available if sole employee is a director or employer’s NICs for 19/20 £100,000 or more
Limits and Thresholds  20/21
Weekly Monthly Annual
Lower earnings limit £120 £520 £6,240
Primary threshold £183 £792 £9,500
Secondary threshold £169 £732 £8,788
Upper earnings limit (and upper secondary thresholds*)  £962 £4,167 £50,000
* Employees generally under 21 years and apprentices under 25 years
Class 1A Employer On car and fuel benefits and most other taxable benefits provided to employees and directors 13.8%
Class 2 Self-employed Flat rate per week £3.05 £158.60 pa
Small profits threshold No compulsory NICs if annual profits less than £6,475 pa
Class 4 Self-employed On annual profits of £9,500 to £50,000: 9%
Over £50,000: 2%
Class 3 Voluntary flat rate £15.30  £795.60pa
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ICAEW The Chartered Institute of Taxation ACCA IPG IR