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National Insurance Contributions

Class 1 (not contracted out)

Employee (primary)

Payable on weekly earnings of

Below £112 (lower earnings limit)

Nil

£112 - £155 (primary threshold)

0%*

£155.01 - £815 (upper earnings limit)

12%**

£156.01 - £815 (upper secondary threshold - under 21s)

12%

Above £815

2%**

* No NICs are actually payable but notional Class 1 NIC is deemed to have been paid; this protects certain state benefit entitlements.

 

** Over state pension age, the employee contribution is generally nil

Employer (secondary)

Up to £156 (secondary threshold)

Nil

Above £156

13.8%

£156.01 - £815 (upper secondary threshold - under 21s)

0%

Employment Allowance

Up to £2,000 (per year)

Class 1A (on relevant benefits)

13.8%

Class 1B (on PAYE settlement arrangement)

13.8%

Class 2 (Self employed)

£2.80 per week

Small profits threshold

£5,965 per annum

Class 3 (Voluntary)

£14.10 per week

Class 4* (Self employed on annual profits)

£8,060 - £42,385

9%

Excess over £42,385

2%

*Exemption applies if state pension age was reached by 6 April 2015.

Note

For those earning between £112 per week and £770 per week, employers receive a rebate of 3.4% on contracted out salary related schemes, and employees a rebate of 1.4%.