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National Insurance Contributions
Class 1 (Employees)
Employee
Employer
Main NIC rate
13.25%
15.05%
No NIC – up to 5 July- on first
£190pw
£175pw
No NIC – from 6 July – on first
£242pw
£175pw
Main rate* charged up to
£967pw
no limit
2% rate on earnings above
£967pw
N/A
Employment allowance per business
N/A
£5,000
*Nil rate of employer NIC for employees under the age of 21 and apprentices under 25, up to £967pw.
For directors the employee NIC threshold for 2022/23 is £11,908.
Employer contributions (at 15.05%) 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).
There will be a new 1.25% Health and Social Care Levy for employees and employers from 2023/24.
Class 2 (Self employed)
2022/23
2021/22
Flat rate per week
£3.15
£3.05
Small profits threshold
£6,725
£6,515
Class 3 (Voluntary)
Flat rate per week
£15.85
£15.40
Class 3A
Contributions vary with age
Class 4 (Self employed)
On profits £11,908 – £50,270
10.25%
9%
(£9,570 - £50,270)
On profits over £50,270
3.25%
2%
* No class 2 contributions are due where profits fall between £6,725 and £12,570.