National Insurance Contributions
| CLASS 1 (EMPLOYEES) | EMPLOYEE | EMPLOYER |
|---|---|---|
| Main NIC rate | 12% | 13.8% |
| From 6.11.2022: No NIC on first | £242 pw | £175 pw |
| Main rate charged up to* | £967 pw | no limit |
| 2% rate on earnings above | £967 pw | N/A |
| Employment allowance per business** | N/A | £5,000 |
*Nil rate of employer NIC on earnings up to £967 per week for employees aged under 21, apprentices aged under 25 and ex-armed forces personnel in their first twelve months of civilian employment.
** Some businesses do not qualify, including certain sole director companies and employers who have an employer’s Class 1 NIC liability of £100,000 or more for 2022/23.
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 if profits above £12,570 | £3.45 |
| CLASS 3 (VOLUNTARY) | |
|---|---|
| Class 3: Flat rate per week | £17.45 |
| CLASS 4 (SELF EMPLOYED) | |
|---|---|
| On profits £12,570 - £50,270 | 9% |
| On profits over £50,270 | 2% |
Employees with earnings above £123 pw and the self-employed with profits over £6,725 access entitlement to contributory benefits.
