National insurance contributions

Class 1 (Employees)

2019/20

2017/18

Employee

Employer

Employee

Employer

NIC rate

12%

13.8%

12%

13.8%

 

No NICs for younger employees1 on the first

£166 pw

£962 pw

£162 pw

£892 pw

No NICs for employees generally on the first

£166 pw

£166 pw

£162 pw

£162 pw

NICs rate charged up to

£962 pw

No limit

£892 pw

No limit

2% NICs on earnings over

£962 pw

N/A

£892 pw

N/A

1 Employees generally under 21 years and apprentices under 25 years

 

Employment allowance

2019/20

2018/19

Per business

£3,000

£3,000

Not available if the sole employee is a director.

 

Earnings limits or thresholds

2019/20

2018/19

Weekly


Annual

Weekly

Annual

Lower earnings limit

£118

£6,136

£116

£6,032

Primary earnings limit

£166

£8,632

£162

£8,424

Secondary earnings threshold

£166

£8,632

£162

£8,424

Upper earnings limit (and
upper secondary threshold 2

£963

£50,000

£892

£46,350

2 Employees generally under 21 years and apprentices under 25 years

 

Class 1A (Employers)

2019/20

2018/19

Most taxable employee benefits

13.8%

13.8%

 

 

 

Class 2 (Self-Employed)

2019/20

2018/19

Flat rate

£3.00 pw £156.00 pa

£2.95 pw £153.40 pa

Small profits threshold

£6,365 pa

£6,205 pa

 

 

 

Class 4 (Self-Employed)

2019/20

2017/18

On profits

£8,632–£50,000 pa 9%

£8,424-£46,350 pa 9%

 

Over £50,000 pa 2%

Over £46,350 pa 2%

 

 

 

Voluntary

2019/20

2018/19

Class 3 flat rate

£15.00 pw £780.00 pa

£14.65 pw £761.80 pa

 

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