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
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
Secondary earnings threshold 156 676 8,112 153 663 7,956
Primary earnings threshold 155 672 8,060 153 663 7,956
Upper accrual point 770 3,337 40,040 770 3,337 40,040
Upper earnings limit 815 3,532 42,385 805 3,489 41,865
Contracted-out S2P rebate 2015/16 2014/15
On band earnings* £112-£770 pw £111-£770 pw
Employer rebate 3.4% 3.4%
Employee rebate 1.4% 1.4%
* Salary related scheme only.
Class 1A (Employers) 2015/16 2014/15
Most taxable employee benefits 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 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%
Voluntary 2015/16 2014/15
Class 3 flat rate £14.10 pw
£733.20 pa
£13.90 pw
£722.80 pa
Class 3A (from 12/10/15) amount depending on age N/A
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