National Insurance Contributions

Class 1 Employees not contracted-out of state second pension (S2P)
15/16 Employee Employer
NICs rate 12% 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 pw No limit
2% NICs on earnings over £815 pw N/A
Certain married women 5.85% 13.8%
Employment Allowance per business £2,000
Contracted-Out rebate on
£112– £770 pw (salary related scheme) 1.4% 3.4%
Limits and Thresholds Weekly Monthly Annual
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 kind 13.8%
Class 1B Employer On PAYE settlement agreements 13.8%
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 pa 9%
Over £42,385 pa 2%
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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ICAEW The Chartered Institute of Taxation ACCA IPG IR