National Insurance Contributions
Class 1 (Employees)
Employee Employer Main NIC rate 12.0% 13.8% No NIC on first £157pw £157pw Main rate* charged up to £866pw no limit 2% rate on earnings above £866pw N/A Employment allowance per business** N/A £3,000
*Nil rate of employer NIC for employees under the age of 21 and apprentices under 25, up to £866pw.
Employer contributions (at 13.8%) are also due on most taxable benefits (Class 1A) and on tax paid on an employee’s behalf under a PAYE settlement agreement (Class 1B).
**Some businesses do not qualify, including certain sole director companies.
Class 2 (Self-employed)
Flat rate per week £2.85 Small profits threshold £6,025
Class 3 (Voluntary)
Flat rate per week £14.25
Class 4 (Self-employed)
On profits £8,164 – £45,000 9.0% On profits over £45,000 2.0%