National Insurance Contributions
Class 1 (Employees)
| Employee | Employer | |
|---|---|---|
| Main NIC rate | 12% | 13.8% |
| No NIC on first | £184pw | £170pw |
| Main rate charged up to* | £967pw | no limit |
| 2% rate on earnings above | £967pw | N/A |
| Employment allowance per business** | N/A | £4,000 |
*Nil rate of employer NIC for employees under the age of 21 and apprentices under 25, up to £967pw.
**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 2020/21.
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).
Class 2 (Self employed)
| Flat rate per week | £3.05 |
| Small profits threshold | £6,515 |
Class 3 (Voluntary)
| Class 3: Flat rate per week | £15.40 |
Class 4 (Self employed)
| On profits £9,568 – £50,270 | 9.0% |
| On profits over £50,270 | 2.0% |