National Insurance Contributions

If you are looking at National Insurance Contributions or planning your finances, please feel free to contact us.  We can discuss your specific circumstances to help you plan tax efficiently.

2018 - 2019

Class 1 (not contracted out) Employer Employee
Payable on weekly earnings of    
Up to £116 (Lower Earnings Limit) Nil Nil
£116 - £162 (Primary Threshold) Nil Nil
£162 - £892 (Upper Earnings Limit) 13.8% 12%
Over £892 13.8% 2%
Employment allowance** (per employer, per year) £3,000 Nil
Over State Retirement Age, the employee contribution is generally Nil
Class 1A (on relevant benefits) 13.8% Nil
Class 1B (on PAYE settlement arrangement) 13.8% Nil
Class 2 (Self-employed) £2.95 per week
Limit of net earnings for class 2 exception £6,205 per annum
Class 3 (Voluntary) £14.65 per week
Class 4* (Self-employed on profits)
£8,424 - £46,350 9%
Excess over £46,350 2%
*Exemption applies if State Retirement Age was reached by 6 April 2018.
** With effect from 6th April 2016, companies are no longer able to reclaim the Employment Allowance where the director is the sole employee.

2017 - 2018

Class 1 (not contracted out) Employer Employee
Payable on weekly earnings of    
Up to £113 (Lower Earnings Limit) Nil Nil
£113 - £157 (Primary Threshold) Nil Nil
£157 - £866 (Upper Earnings Limit) 13.8% 12%
Over £866 13.8% 2%
Employment allowance** (per employer, per year) £3,000 Nil
Over State Retirement Age, the employee contribution is generally Nil
Class 1A (on relevant benefits) 13.8% Nil
Class 1B (on PAYE settlement arrangement) 13.8% Nil
Class 2 (Self-employed) £2.85 per week
Limit of net earnings for class 2 exception £6,025 per annum
Class 3 (Voluntary) £14.25 per week
Class 4* (Self-employed on profits)
£8,164 - £45,000 9%
Excess over £45,000 2%
*Exemption applies if State Retirement Age was reached by 6 April 2017.
** With effect from 6th April 2016, companies are no longer able to reclaim the Employment Allowance where the director is the sole employee.

2016 - 2017

Class 1 (not contracted out) Employer Employee
Payable on weekly earnings of    
Up to £112 (Lower Earnings Limit) Nil Nil
£112 - £155 (Primary Threshold) Nil Nil
£155 - £156 (Secondary Threshold) Nil 12%
£156 - £827 (Upper Earnings Limit) 13.8% 12%
Over £827 13.8% 2%
Employment allowance** (per employer, per year) £3,000 Nil
Over State Retirement Age, the employee contribution is generally Nil
Class 1A (on relevant benefits) 13.8% Nil
Class 1B (on PAYE settlement arrangement) 13.8% Nil
Class 2 (Self-employed) £2.80 per week
Limit of net earnings for class 2 exception £5,965 per annum
Class 3 (Voluntary) £14.10 per week
Class 4* (Self-employed on profits)
£8,060 - £43,000 9%
Excess over £43,000 2%
*Exemption applies if State Retirement Age was reached by 6 April 2016.
** With effect from 6th April 2016, companies are no longer able to reclaim the Employment Allowance where the director is the sole employee.

2015 - 2016

Class 1 (not contracted out) Employer Employee
Payable on weekly earnings of:    
Up to £112 (Lower Earnings Limit) Nil Nil
£112 - £155 (Primary Threshold and Secondary Threshold) Nil Nil
     
£156 - £815 (Upper Earnings Limit and Upper Secondary Threshold) 13.8% 12%
Over £815 13.8% 2%
Employment Allowance** (per employer, per year) £2,000 Nil
Over State Retirement Age, the employee contribution is generally Nil
Class 1A (on relevant benefits) 13.8% Nil
Class 1B (on PAYE settlement arrangement) 13.8% Nil
Class 2 (Self-employed) £2.80 per week
Limit of net earnings for class 2 exception £5,965 per annum
Class 3 (Voluntary) £14.10 per week
Class 4* (Self-employed on profits)
£8,060 - £42,385 9%
Excess over £42,385 2%
*Exemption applies if State Retirement Age was reached by 6 April 2015.

2016 - 2017

Class 1 (not contracted out) Employer Employee
Payable on weekly earnings of    
Up to £112 (Lower Earnings Limit) Nil Nil
£112 - £155 (Primary Threshold) Nil Nil
£155 - £156 (Secondary Threshold) Nil 12%
£156 - £827 (Upper Earnings Limit) 13.8% 12%
Over £827 13.8% 2%
Employment allowance** (per employer, per year) £3,000 Nil
Over State Retirement Age, the employee contribution is generally Nil
Class 1A (on relevant benefits) 13.8% Nil
Class 1B (on PAYE settlement arrangement) 13.8% Nil
Class 2 (Self-employed) £2.80 per week
Limit of net earnings for class 2 exception £5,965 per annum
Class 3 (Voluntary) £14.10 per week
Class 4* (Self-employed on profits)
£8,060 - £43,000 9%
Excess over £43,000 2%
*Exemption applies if State Retirement Age was reached by 6 April 2016.
** With effect from 6th April 2016, companies are no longer able to reclaim the Employment Allowance where the director is the sole employee.

 

With effect from 6th April 2015, no employer’s National insurance contributions are due for employees aged under 21 on earnings up to the Upper Secondary Threshold. From 6th April 2016, no employer’s National insurance contributions are due for apprentices up to 25, up to the Upper Secondary Threshold.

Please contact us for further information.

Disclaimer:  This App and its contents have been produced as a helpful reference point.  The information should be used as a guide only and your specific circumstances are best discussed directly with us.

No reliance should be placed on this material and no action should be taken without seeking the appropriate professional or legal advice. Although the authors make reasonable efforts to ensure the content of this App is accurate and up-to-date, the authors make no representations, warranties or guarantees that the content is accurate, complete or up-to-date and accept no responsibility whatsoever for any loss occasioned by anyone acting on information within this App.