National insurance rates
National Insurance Contributions are payable by both employees and the self-employed if they are between the age of 16 and 65 for men or 16 and 60 for women.
Employees who are over the National Insurance threshold pay Class 1 contributions via the Pay As You Earn system before they receive their salary.
Employers also have to pay Class 1A National Insurance Contributions on any car and fuel benefit assessed on the employee. Since April 2000 the employer pays Class 1A National Insurance Contributions on all other taxable benefits in kind.
The self-employed may, depending on the level of their income, pay Classes 2 and 4.
Class 2 is usually paid monthly in arrears via direct debit. Class 4 is paid along with the payments on account of their income tax liabilities on 31st January and 31st July each year.
Some taxpayers may pay classes 1, 2 and 4 National Insurance or may have more than one employment. To avoid excess National Insurance contributions being paid there are two calculations that can be carried out. Any overpayments will be refunded.
The following national insurance rates apply.
|£ per week (unless stated)||2012/2013||2013/2014||2014/2015||2015/2016||2016/2017|
|Lower earnings limit, primary Class 1||£107||£109||£111||£112||£112|
|Upper earnings limit, primary Class 1||£797||£805||£815||£827||£827|
|Upper Accruals Point ||£770||£770||£770||£770||£770|
|Employees' primary Class 1 rate between primary threshold and upper earnings limit||12%||12%||12%||12%||12%|
|Employees' primary Class 1 rate above upper earnings limit||2%||2%||2%||2%||2%|
|Class 1A rate on employer provided benefits (1)||13.8%||13.8%||13.8%||13.8%||13.8%|
|Employees' contracted-out rebate - salary-related schemes||1.6%||1.4%||1.4%||1.4%||1.4%|
|Married women's reduced rate between primary threshold and upper earnings limit||5.85%||5.85%||5.85%||5.85%||5.85%|
|Married women's rate above upper earnings limit||2%||2%||2%||2%||2%|
|Employers' secondary Class 1 rate above secondary threshold||13.8%||13.8%||13.8%||13.8%||13.8%|
|Employers' contracted-out rebate, salary-related schemes||3.7%||3.4%||3.4%||3.4%||3.4%|
|Employers' contracted-out rebate, money-purchase schemes||1.4%||Abolished 6/4/2012||N/A||N/A||N/A|
|Class 2 rate||£2.50||£2.65||£2.70||£2.75||£2.80|
|Class 2 small earnings exception (per year)||£5,315||£5,595||£5,725||£5,885||abolished|
|Special Class 2 rate for share fishermen||£3.15||£3.30||£3.35||£3.40||£3.45|
|Special Class 2 rate for volunteer development workers||£5.10||£5.35||£5.45||£5.55||£5.60|
|Class 3 rate (per week)||£12.60||£13.25||£13.55||£13.90||£14.10|
|Class 4 lower profits limit (per year)||£7,225||£7,605||£7,755||£7,956||£8,060|
|Class 4 upper profits limit (per year)||£42,475||£42,475||£41,450||£41,865||£42,385|
|Class 4 rate between lower profits limit and upper profits limit||9%||9%||9%||9%||9%|
|Class 4 rate above upper profits limit||2%||2%||2%||2%||2%|
|Additional primary Class 1 percentage rate on deferred employments||2%||2%||2%||2%||2%|
|Additional Class 4 percentage rate where deferment has been granted||2%||2%||2%||2%||2%|
- Class 1A NICs are payable in July and are calculated on the value of taxable benefits provided in the previous
tax year, using the secondary Class 1 percentage rate appropriate to that tax year.