National insurance contributions (NICs)

2019/20 Class 1 (employed) rates

Employee Employer
Earnings per week % Earnings per week %
Up to £166 0 Up to £166 0
£166.01 - £962 12 Over £166 13.8
Over £962 2    

Entitlement to contribution-based benefits for employees retained for earnings between £118.01 and £166 per week.

The employer rate is 0% for employees under 21 and apprentices under 25 on earnings up to £962 per week.

Class 1A (employers) On employee taxable benefits 13.8%
Class 1B (employers) On PAYE Settlement Agreements 13.8%
Class 2 (self-employed) Flat rate per week £3.00
Small profits threshold £6,365 per annum
Class 3 (voluntary) Flat rate per week £15.00
Class 4 (self-employed) On profits between £8,632 - £50,000 9%
Excess over £50,000 2%

In a change to the government's previous plans, Class 2 NICs are no longer set to be abolished from April 2019.

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Email website@elsbyandco.co.uk