National Insurance Contributions Bill

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)	Employer	Employee
Payable on weekly earnings of
Up to £123 (Lower Earnings Limit)	Nil	Nil
£124 – £189*(£241 from 6/7/22) (Primary Threshold) (see note)	Nil	Nil
£190 (£242 from 6/7/22) -£966 (Upper Earnings Limit)	15.05%	13.25%
Over £967	15.05%	3.25%
Employment allowance** (per employer, per year)	£4,000	Nil

Over State Retirement Age, the employee contribution is generally Nil

	Employer	Employee
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)

	Employer	Employee
£9,880 – £50,269	10.25%	10.25%
Excess over £50,270	3.25%	3.25%

2021 – 2022 Employer & Employee Rates

Class 1 (not contracted out)	Employer	Employee
Payable on weekly earnings of
Up to £120 (Lower Earnings Limit)	Nil	Nil
£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 £967	13.8%	2%
Employment allowance** (per employer,per year)	£4,000	Nil

Over State Retirement Age, the employee contribution is generally Nil

	Employer	Employee
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)

	Employer	Employee
£8,632 – £50,000	9%
Excess over £50,000	2%
£9,569 – £50,270		9%
Excess over £50,270		2%

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.

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National Insurance Contributions Bill