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.
2021-22
| Class 1 (not contracted out) | Employer | Employee |
| Payable on Weekly earnings of | ||
| Up to £120 (Lower earnings Limit) | Nil | Nil |
| £120 – £184 (Primary Threshold) | Nil | Nil |
| £184 – £967 (Upper earnings Limit) | 13.8% | 12% |
| Over £967 | 13.8% | 2% |
| Employment Allowance ** (per employer, per year) | £4,000 | Nil |
| 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 | £6,515 | |
| Class 3 (Voluntary) | £15.40 per week | |
| Class 4* (Self Employed on profits) | ||
| £9,500 – £50,000 | 9% | |
| Excess over £50,000 | 2% |
2020-21
| Class 1 (not contracted out) | Employer | Employee |
| Payable on Weekly earnings of | ||
| Up to £118 (Lower earnings Limit) | Nil | Nil |
| £118 – £166 (Primary Threshold | Nil | Nil |
| £166 – £962 (Upper earnings Limit) | 13.8% | 12% |
| Over £962 | 13.8% | 2% |
| Employment Allowance ** (per employer, per year) | £4,000 | Nil |
| 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 | £6,475 | |
| Class 3 (Voluntary) | £15.30 per week | |
| Class 4* (Self Employed on profits) | ||
| £9,500 – £50,000 | 9% | |
| Excess over £50,000 | 2% |
*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.
Disclaimer: This Website / App and its contents have been produced as a helpful reference point. The information should be used as a guide only and your specific circumstances are best discussed directly with us.
No reliance should be placed on this material and no action should be taken without seeking the appropriate professional or legal advice. Although the authors make reasonable efforts to ensure the content of this Website / App is accurate and up-to-date, the authors make no representations, warranties or guarantees that the content is accurate, complete or up-to-date and accept no responsibility whatsoever for any loss occasioned by anyone acting on information within this Website / App.