Class 1 (Employees)
|
Employee |
Employer |
| Main NIC rate |
12.0% |
13.8% |
| No NIC on first |
£162pw |
£162pw |
| Main rate* charged up to |
£892pw |
no limit |
| 2% rate on earnings above |
£892pw |
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 £892pw.
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).
**Some businesses do not qualify, including certain sole director companies.
Class 2 (Self-employed)
| Flat rate per week |
£2.95 |
| Small profits threshold |
£6,205 |
Class 3 (Voluntary)
| Flat rate per week |
£14.65 |
Class 4 (Self-employed)
| On profits £8,424 – £46,350 |
9.0% |
| On profits over £46,350 |
2.0% |
