National Insurance Contributions

Class 1 (not contracted out)

Employer

Employee

Payable on weekly earnings of

 

 

Up to £109 (lower earnings limit)

Nil

Nil

£109 – £148 (employers’ earnings threshold)

Nil

*0%

£148.01 – £149 (employees’ earnings theshold)

13.8%

*0%

£149.01 – £797 (upper earnings threshold)

13.8%

12%

over £797

13.8%

2%

*No NICs are catually payable but notational Class 1 NIC is deemed to have been paid; this protects certain basic state benefit entitlements.
Over state retirement age, the employee contribution is generally nil.

Class 1A

On relevant benefits

13.8%

Nil

Class 2

Self employed

£2.70 per week

 

 

Limit of net earnings for exception

£5,725 per annum

 

Class 3

Voluntary

£13.55 per week

 

 

Class 4*

Self employed on profits

 

 

 

 

£7,755 – £41,450

9%

 

 

 

Excess over £41,450

2%

 

 

*Exemption applies if state retirement age was reached by 6 April 2013