National Insurance Contributions
Class 1 (Employees)
| Employee | Employer | |
|---|---|---|
| Main NIC rate | 13.25% | 15.05% |
| 6.4.2022 to 5.7.2022: No NIC on first | £190pw | £175pw |
| 6.7.2022 to 5.4.2023: No NIC on first | £242pw | £175pw |
| Main rate charged up to* | £967pw | no limit |
| 2% rate on earnings above | £967pw | N/A |
| Employment allowance per business** | N/A | £5,000 |
*Nil rate of employer NIC on earnings up to £967pw for employees aged under 21, apprentices aged under 25 and ex-armed forces personnel in their first twelve months of civilian employment.
**Some businesses do not qualify, including certain sole director companies and employers who have an employer’s Class 1 NIC liability of £100,000 or more for 2021/22.
Employer contributions (at 15.05%) 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).
Class 2 (Self employed)
| Flat rate per week if profits above £11,908 | £3.15 |
Class 3 (Voluntary)
| Class 3: Flat rate per week | £15.85 |
Class 4 (Self employed)
| On profits between £11,908 and £50,270 | 10.25% |
| On profits over £50,270 | 3.25% |
Employees with earnings above £123pw and the self-employed with profits over £6,725 access entitlement to contributory benefits.