• 2021/22
• 2020/21

• National Insurance contributions (NIC) - rates and allowances

  • Employees start paying Class 1 NIC from age 16 (if sufficient earnings).
  • Employers pay Class 1 NIC in accordance with the table below.
  • Employer NIC for employees under the age of 21 and apprentices under the age of 25 is reduced from the normal rate of 13.8% to 0% up to the Upper Secondary Threshold of £967 per week. Also applies to veterans in the first 12 months of employment.
  • Employees' Class 1 NIC stop when they reach their State Pension age. The employer's contribution continues.

  Employees - Class 1 - 2021/22

  Earnings per week	%
  Up to £184	Nil
  £184.01 - £967	12
  Over £967	2

  Entitlement to state pension and other contribution-based benefits is retained for earnings between £120 and £184 per week.

  Employers - Class 1 - 2021/22

  Earnings per week	%
  Up to £170	Nil
  Over £170	13.8

  Other National Insurance payable by employers

  Class 1A - 13.8% on broadly all taxable benefits provided to employees and on certain taxable termination and sporting testimonial payments in excess of £30,000

  Class 1B - 13.8% on taxable PAYE Settlement Agreements

  Self-employed - Class 2 and 4

  • A self-employed person starts paying Class 2 and Class 4 NIC from 16 or over (if sufficient profits)
  • Class 2 NIC stop when a person reaches State Pension age
  • Class 4 NIC stop from the start of the tax year after the one in which the person reaches State Pension age.

  Self-employed - Class 2 - 2021/22

  Flat rate per week	£3.05
  Small Profits Threshold	£6,515 per year

  No Class 2 is due if the amount of trading profits assessable to income tax and Class 4 NIC is below this figure. However, a person might decide to carry on paying Class 2 voluntarily to accrue entitlement to the State Pension and entitlement to other benefits.  

  Class 4 - 2021/22

  Annual profits	%
  Up to £9,568	Nil
  £9,568.01 - £50,270	9
  Over £50,270	2

  Class 3

  • A person needs 35 years (30 years if State Pension age is before 6 April 2016) of NIC to get a full State Pension.
  • Class 3 voluntary contributions can be paid to fill or avoid gaps in a NI record.

  Class 3 - 2021/22

  Flat rate per week £15.40

• National Insurance contributions (NIC) - rates and allowances

  • Employees start paying Class 1 NIC from age 16 (if sufficient earnings).
  • Employers pay Class 1 NIC in accordance with the table below.
  • Employer NIC for employees under the age of 21 and apprentices under the age of 25 is reduced from the normal rate of 13.8% to 0% up to the Upper Secondary Threshold of £962.
  • Employees' Class 1 NIC stop when they reach their State Pension age . The employer's contribution continues.

  Employees - Class 1 - 2020/21

  Earnings per week	%
  Up to £183	Nil
  £183.01 - £962	12
  Over £962	2

  Entitlement to state pension and other contribution-based benefits is retained for earnings between £120 and £183 per week.

  Employers - Class 1 - 2020/21

  Earnings per week	%
  Up to £169	Nil
  Over £169	13.8

  Other National Insurance payable by employers

  Class 1A - 13.8% on broadly all taxable benefits provided to employees and on certain taxable termination and sporting testimonial payments in excess of £30,000

  Class 1B - 13.8% on taxable PAYE Settlement Agreements

  Self-employed - Class 2 and 4

  • A self-employed person starts paying Class 2 and Class 4 NIC from 16 or over (if sufficient profits)
  • Class 2 NIC stop when a person reaches State Pension age
  • Class 4 NIC stop from the start of the tax year after the one in which the person reaches State Pension age.

  Self-employed - Class 2 - 2020/21

  Flat rate per week	£3.05
  Small Profits Threshold	£6,475 per year

  No Class 2 is due if the amount of trading profits assessable to income tax and Class 4 NIC is below this figure. However, a person might decide to carry on paying Class 2 voluntarily to accrue entitlement to the State Pension and entitlement to other benefits.

  Class 4 - 2020/21

  Annual profits	%
  Up to £9,500	Nil
  £9,500.01 - £50,000	9
  Over £50,000	2

  Class 3

  • A person needs 35 years (30 years if State Pension age is before 6 April 2016) of NIC to get a full State Pension.
  • Class 3 voluntary contributions can be paid to fill or avoid gaps in a NI record.

  Class 3 - 2020/21

  Flat rate per week £15.30