National Insurance Contributions (NICs)
| Class 1 (not contracted out) | Employee (primary) |
|---|---|
| Payable on weekly earnings of | |
| Below £111 (lower earnings limit) | 0% |
| £111 - £153 (primary threshold) | 0%* |
| £153.01 - £805 (upper earnings limit) | 12%** |
| Above £805 | 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 £153 (secondary threshold) | Nil |
| Above £153 | 13.8% |
| 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) | £2.75 per week |
| Limit of net earnings for exception | £5,885 per annum |
| Class 3 (Voluntary) | £13.90 per week |
| Class 4* (Self employed on profits) | |
| £7,956 - £41,865 | 9% |
| Excess over £41,865 | 2% |
| *Exemption applies if state pension age was reached by 6 April 2014. | |
Note
For those earning between £111 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%.