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national-insurance-contributions

National Insurance Contributions 2018/19

Class 1 (Employees)

  Employee Employer
Main NIC rate 12.0% 13.8%
No NIC on first £166pw £166pw
Main rate * charged up to £962pw No limit
2% rate on earnings above £962pw N/A
Employment allowance per business ** N/A £3,000

* Nil rate of employer NIC for employees under the age of 21 and apprentices under 25, up to £962pw.

** Some businesses do not qualify, including certain sole director companies.

Employer contributions (at 13.8%) are also due on most taxable benefits (Class 1A) and on tax paid on an employee’s behalf under a PAYE settlement agreement (Class 1B).

Class 2 (Self-employed)

Flat rate per week £3
Small profits threshold £6,365

Class 3 (Voluntary)

Flat rate per week £15

Class 4 (Self-employed)

On profits £8,632 – £50,000 9.0%
On profits over £50,000 2.0%