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%