0330 133 1643
contact@balloonaccounting.co.uk
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National Insurance

with you on the journey to a brighter future

National Insurance

If you are looking at National Insurance Contributions or planning your finances, please feel free to contact us. We can discuss your specific circumstances to help you plan tax efficiently.

2020 – 21
Class 1 (not contracted out)EmployerEmployee
Payable on Weekly earnings of
Up to £120 (Lower earnings Limit)NilNil
£120 – £183 (Primary ThresholdNilNil
£183 – £962 (Upper earnings Limit)13.8%12%
Over £96213.8%2%
Employment Allowance ** (per employer, per year)£4,000Nil
Over State Retirement Age, the employee Contribution is generally Nil
Class 1A (on relevant benfits)13.8%Nil
Class 1B (ob PAYE settlement arrangement)13.8%Nil
Class 2 (Self Employed£3.05 per week
Limit of net earnings for class 2 exemption£6,465
Class 3 (Voluntary)£15.30 per week
Class 4* (Self Employed on profits)
£9,500 – £50,0009%
Excess over £50,0002%
2019 – 20
Class 1 (not contracted out)EmployerEmployee
Payable on Weekly earnings of
Up to £118 (Lower earnings Limit)NilNil
£118 – £166 (Primary ThresholdNilNil
£166 – £962 (Upper earnings Limit)13.8%12%
Over £96213.8%2%
Employment Allowance ** (per employer, per year)£3,000Nil
Over State Retirement Age, the employee Contribution is generally Nil
Class 1A (on relevant benfits)13.8%Nil
Class 1B (ob PAYE settlement arrangement)13.8%Nil
Class 2 (Self Employed£3.00 per week
Limit of net earnings for class 2 exemption£6,365
Class 3 (Voluntary)£15.00 per week
Class 4* (Self Employed on profits)
£9,500 – £50,0009%
Excess over £50,0002%

*Exemption applies if State Retirement Age was reached by 6th April 2018

**With effect from 6th April 2016, companies are no longer able to reclaim the Employment Allowance where the director is the sole employee.

With effect from 6th April 2015, no employer’s National insurance contributions are due for employees aged under 21 on earnings up to the Upper Secondary Threshold. From 6th April 2016, no employer’s National insurance contributions are due for apprentices up to 25, up to the Upper Secondary Threshold.

Please contact us for further information.

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