National Insurance Contributions
National Insurance Contributions (Table D)
| Class 1 (Employees) | Employee | Employer |
|---|---|---|
| Main NIC rate | 12.0% | 13.8% |
| No NIC on first | £155pw | £156pw |
| Main rate* charged up to | £815pw | no limit |
| 2% rate on earnings above | £815pw | N/A |
| Contracted out rebate on £112.01–£770pw | 1.4% | 3.4% |
| Employment allowance per business | N/A | £2,000 |
*Nil rate of employer NIC for employees under the age of 21 up to £815pw.
Since 6.4.2012, only employment with a salary-related pension scheme can benefit from the lower contracted-out NIC rates.
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).
Class 2 (Self-employed)
| Flat rate per week | £2.80 |
| Small profits threshold | £5,965 |
Class 3 (Voluntary)
| Flat rate per week | £14.40 |
Class 3A
| Contributions vary with age |
Class 4 (Self-employed)
| On profits £8,061 – £42,385 | 9.0% |
| On profits over £42,385 | 2.0% |