National Insurance Contributions
| Class 1 (not contracted out) |
Employer |
Employee |
| Payable on weekly earnings of |
|
|
| Up to £109 (lower earnings limit) |
Nil |
Nil |
| £109 - £148 (employers' earnings threshold) |
Nil |
*0 |
| £148.01 - £149 (employees’ earnings threshold) |
13.8% |
*0 |
| £149.01 - £797 (upper earnings limit) |
13.8% |
12% |
| Over £797 |
13.8% |
2% |
| *No NICs are actually payable but notional Class 1 NIC is deemed to have been paid; this protects certain basic state benefit entitlements.Over state pension 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) |
£2.70 per week |
| Limit of net earnings for exception |
£5,725 per annum |
| |
|
| Class 3 (Voluntary) |
£13.55 per week |
| |
|
| Class 4* (Self employed on profits) |
|
| £7,755 to £41,450 |
9% |
| Excess over £41,450 |
2% |
| *Exemption applies if state pension age was reached by 6 April 2013. |
|
Note
For those earning between £109 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%.
