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Earnings thresholds and contribution percentages for Class 1 (employed), Class 2 and 4 (self-employed) and Class 3 (voluntary) national insurance contributions.
Employees start paying Class 1 NIC from age 16 (if sufficient earnings).
Employers pay Class 1 NIC in accordance with the table below.
Employer NIC for employees under the age of 21 and apprentices under the age of 25 is reduced from the normal rate of 13.8% to 0% up to the Upper Secondary Threshold of £967 per week. Also applies to veterans in the first 12 months of employment.
Employees Class 1 NIC stop when they reach their 'State Pension age'. The employer's contribution continues.
Entitlement to state pension and other 'contribution-based benefits' is retained for earnings between £120 and £184 per week
Entitlement to state pension and other 'contribution-based benefits' is retained for earnings between £118 and £166 per week
13.8% on broadly all taxable benefits provided to employees and on certain taxable termination and sporting testimonial payments in excess of £30,000.
13.8% on taxable PAYE Settlement Agreements.
A self-employed person starts paying Class 2 and Class 4 NIC from 16 or over (if sufficient profits).
Class 2 NIC stop when a person reaches State Pension age.
Class 4 NIC stop from the start of the tax year after the one in which the person reaches State Pension age.
Small Profits Threshold (per year)
No Class 2 is due if the amount of trading profits assessable to income tax and Class 4 NIC is below this figure. However, a person might decide to carry on paying Class 2 voluntarily to accrue entitlement to the State Pension and entitlement to other benefits.
A person needs 35 years (30 years if State Pension age is before 6 April 2016) of NIC to get a full State Pension.
Class 3 voluntary contributions can be paid to fill or avoid gaps in a NI record.
Flat rate per week: £15.40 (2020/21: £15.30)
06 Oct 2021
The government has delayed the introduction of Making Tax Digital (MTD) for Income Tax Self Assessment (MTD for ITSA) for a year.
From April 2022, the government plans to create a new social care levy which will see UK-wide tax and National Insurance Contribution (NIC) increases.
HM Treasury has announced that Chancellor Rishi Sunak will deliver the Autumn 2021 Budget on Wednesday 27 October.
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