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 15.05% 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 - 2022/23

* £242 from 6 July 2022

Entitlement to state pension and other contribution-based benefits is retained for earnings between £123 and £190* per week.

Employers - Class 1 - 2022/23

Other National Insurance payable by employers

Class 1A - 15.05% on broadly all taxable benefits provided to employees and on certain taxable termination and sporting testimonial payments in excess of £30,000

Class 1B - 15.05% 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 - 2022/23

For 2022/23 the point at which the self-employed person starts to pay Class 2 NICs will increase to £11,908. This means those with profits between the Small Profits Threshold and the Lower Profits Limit will not pay Class 2 NICs, but will still be able to access entitlement to contributory benefits.  A self-employed person with profits below the Small Profits Threshold might decide to carry on paying Class 2 voluntarily to accrue entitlement to the State Pension and other benefits.

Class 4 - 2022/23

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 - 2022/23

Flat rate per week £15.85

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

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

Employers - Class 1 - 2021/22

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

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 other benefits.  

Class 4 - 2021/22

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