National Insurance Contributions

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National Insurance Contributions

If you are looking at National Insurance Contributions or planning your finances, please feel free to contact us. We can discuss your specific circumstances to help you plan tax efficiently.

2022 – 2023 Employer & Employee Rates

Class 1 (not contracted out)EmployerEmployee
Payable on weekly earnings of
Up to £123 (Lower Earnings Limit)NilNil
£124 - £189*(£241 from 6/7/22) (Primary Threshold) (see note)NilNil
£190 (£242 from 6/7/22) -£966 (Upper Earnings Limit)15.05%13.25%
Over £96715.05%3.25%
Employment allowance** (per employer, per year)£4,000Nil

Over State Retirement Age, the employee contribution is generally Nil

EmployerEmployee
Class 1A (on relevant benefits)15.05%Nil
Class 1 B (on PAYE settlement arrangement)15.05%Nil
Class 2 (Self-employed)£3.15 per week £3.15 per week
Limit of net earnings for class 2 exception £6,725 per annum £6,725 per annum
Class 3 (Voluntary)£15.85 per week£15.85 per week

Class 4* (Self-employed on profits)

EmployerEmployee
£9,880 - £50,26910.25%10.25%
Excess over £50,2703.25%3.25%

2021 – 2022 Employer & Employee Rates

Class 1 (not contracted out)EmployerEmployee
Payable on weekly earnings of
Up to £120 (Lower Earnings Limit)NilNil
£120 -£170 * (Primary Threshold) (see note)Nil
£120 - £184 (Primay Threshold)Nil
£170 -£967 (Upper Earnings Limit)13.8%
£184 - £967 (Upper Earnings Limit)12%
Over £96713.8%2%
Employment allowance** (per employer,per year)£4,000Nil

Over State Retirement Age, the employee contribution is generally Nil

EmployerEmployee
Class 1A (on relevant benefits)13.8%Nil
Class 1 B (on PAYE settlement arrangement)13.8%Nil
Class 2 (Self-employed)£3.05 per week £3.05 per week
Limit of net earnings for class 2 exception £6,515 per annum £6,515 per annum
Class 3 (Voluntary)£15.40 per week£15.40 per week

Class 4* (Self-employed on profits)

EmployerEmployee
£8,632 - £50,0009%
Excess over £50,0002%
£9,569 - £50,270 9%
Excess over £50,2702%

With effect from 6th April 2015, no employer’s National Insurance contributions are due for employees aged under 21 on earnings up to the Upper Secondary Threshold. From 6th April 2016, no employer’s National Insurance contributions are due for apprentices up to 25, up to the Upper Secondary Threshold.

Please contact us for further information.

Disclaimer : This website and its contents have been produced as a helpful reference point. The information should be used as a guide only and your specific circumstances are best discussed directly with us.

No reliance should be placed on this material and no action should be taken without seeking the appropriate professional or legal advice. Although the authors make reasonable efforts to ensure the content of this website is accurate and up-to-date, the authors make no representations, warranties or guarantees that the content is accurate, complete or up-to-date and accept no responsibility whatsoever for any loss occasioned by anyone acting on information without this website.

Our service to you

If you are a self employed, business owner/director of company looking to get your accountancy and taxation matters sorted, look no further. We, at Naail & Co, are pro-active and easily accessible accountants and tax advisors, who will not only ensure that all your filing obligations are up to date with Companies House and HMRC, but also you do not pay a penny more in taxes than you have to. We work on a fixed fee basis and provide same day response to all your phone and email enquiries. We will also allocate a designated accounts manager who would have better understanding of your and business financial and taxation affairs. Book a free consultation call using the link below.

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