National Insurance
Class 1

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.

Employees Class 1 NIC stop when they reach their ‘State Pension age’. The employer’s contribution continues.

Other National Insurance payable by employers

Class 1A
13.8% on broadly all taxable benefits provided to employees.

Class 1B
13.8% on PAYE Settlement Agreements.

Class 2 and 4 (self-employed)

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.

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.

Flat rate per week: £14.25 (2016/17: £14.10)

Employees 2017/18:

Earnings per week%
Up to £157Nil
£157.01 – £86612
Over £8662

Note…

Entitlement to state pension and other ‘contribution-based benefits’ is retained for earnings between £113 and £157 per week

Employees 2016/17:

Earnings per week%
Up to £155Nil
£155.01 – £82712
Over £8272

Note…

Entitlement to state pension and other ‘contribution-based benefits’ is retained for earnings between £112 and £155 per week.

Employers 2017/18:

Earnings per week%
Up to £157Nil
Over £15713.8
Upper Secondary Threshold (for under 21s and apprentices under 25)
Up to £866
0
Employers 2016/17:

Earnings per week%
Up to £156Nil
Over £15613.8
Upper Secondary Threshold (for under 21s and apprentices under 25)
Up to £827
0
Class 2 2016/17:

Class 2£
Flat rate per week2.80
Small Profits Threshold (per annum) 15,965
Class 4 2017/18:

Annual profits%
Up to £8,164Nil
£8,164.01 – £45,0009
Over £45,0002
Class 4 2016/17:

Annual profits%
Up to £8,060Nil
£8,060.01 – £43,0009
Over £43,0002