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.

2020 – 2021

Class 1 (not contracted out)EmployerEmployee
Payable on weekly earnings of
Up to £120 (Lower Earnings Limit) Nil Nil
£120 - £183* (Primary Threshold) (see note) Nil Nil
£183 - £962 (Upper Earnings Limit) 13.8% 12%
Over£962 13.8% 2%
Employment allowance** (per employer, per year) £4,000 Nil

Over State Retirement Age, the employee contribution is generally Nil

DetailsEmployerEmployee
Class 1A (on relevant benefits) 13.8% Nil
Class 1 B (on PAYE settlement arrangement) 13.8% Nil

Class 2 (Self­employed)

£3.05 per week

Class 3 (Voluntary)

£6,465 per annum

Class 4*** (Self-employed on profits)

£9,500 to £50,000 – 9%

Excess over £50,000 – 2% 

*Secondary Threshold (ST) Employers start paying National Insurance from £169.
** With effect from 6th April 2016, companies are no longer able to reclaim the Employment Allowance where the director is the sole employee.
***Exemption applies if State Retirement Age was reached by 6 April 2018.

 

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