National insurance contributions
National insurance contributions and rates in 2017/18
|Earnings per week||Earnings per week|
|Up to £113||Nil*||Up to £157||0%|
|From £113.01 to £157||0%||Over £157||13.8%*|
|From £157.01 to £866||12%||Over state retirement age||13.8%|
|Over state retirement age||0%|
*0% for employees under 21 and apprentices under 25 on earnings up to £866 per week.
An employer can claim employment allowance of £3,000. Only 1 claim may be made by the employer.
*Entitlement to contribution-based benefits retained for earnings between £113 and £157 per week
**The rate is 0% in relation to employees under 21 and apprentices under 25 on earnings up to £866 per week
***Per employer, per year. 1 claim only for companies in a group or under common control. Not available if the only paid employee is a director.
|Class 1A (on relevant benefits)||13.8%|
|Class 1B (on PAYE settlement arrangement)||13.8%|
|Class 2 (self employed)||£2.85 per week|
|Class 2 contributions - share fishermen||£3.50 per week|
|Class 2 contributions - volunteer development workers||£5.65 per week|
|Small profits threshold||£6,025 per annum|
|Contributions cease at state retirement age|
|Class 3 (voluntary)||£14.25 per week|
|Class 4* (Self employed on profits)|
|£8,164 to £45,000||9%|
|*Exemption applies if state retirement age was reached by 6 April 2017.|
|Class 1||£4,424.16 + 2% of earnings over £45,000 pa.|
|Class 2 and Class 4||£3,463.44 + 2% of profits over £45,000 pa.|
- For children under 16, and employees over state pension age there are no national insurance contributions payable, but employers' contributions remain payable.
- No employers national insurance contributions are payable for those under 21, or 25 for an apprentice.
2018 and beyond
Class 2 national insurance contributions will be abolished from April 2018.