National Insurance Contributions

Class 1 2016/17 2015/16
Employee Employer Employee Employer
NIC rate 12% 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 pw No limit £815 pw No limit
2% NICs on earnings over £827 pw N/A £815 pw N/A
Certain married women 5.85% 13.8% 5.85% 13.8%
* For 2016/17, 25 for apprentices.
Contracted-out rebate on salary-related scheme
2016/17 2015/16
Reduction on band earnings N/A £112-£770 pw
Employer rate reduction N/A 3.4%
Employee rate reduction N/A 1.4%
Employment allowance 2016/17 2015/16
Payable per business – not available in 2016/17 if a director is the sole employee £3,000 £2,000
Earnings limits and thresholds 2016/17 2015/16
Weekly Monthly Annual
Weekly
Monthly
Annual
£ £ £ £ £ £
Lower earnings limit 112 486 5,824 112 486 5,824
Primary earnings threshold 155 672 8,060 155 672 8,060
Secondary earnings threshold 156 676 8,112 156 676 8,112
Upper earnings limit and upper secondary threshold (under 21*) 827 3,583 43,000 815 3,532 42,385
* For 2016/17, 25 for apprentices.
Class 1A Employer
2016/17 2015/16
On car & fuel benefits and most other taxable benefits 13.8% 13.8%
Self-employed Class 2
2016/17 2015/16
Flat rate £2.80 pw
£145.60 pa

£2.80 pw
£145.60 pa

Self-employed 2016/17 2015/16
Small profits threshold £5,965 pa £5,965 pa
Self-employed Class 4
2016/17 2015/16
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 3 2016/17 2015/16
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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ICAEW The Chartered Institute of Taxation ACCA IPG IR