National insurance contributions

Class 1 (Employees)

2020/21

2019/20

Employee

Employer

Employee

Employer

NIC rate

12%

13.8%

12%

13.8%

No NICs for younger employees1 on the first

£183 pw

£962 pw

£166 pw

£962 pw

No NICs for employees generally on the first

£183 pw

£169 pw

£166 pw

£166 pw

NICs rate charged up to

£962 pw

No limit

£962pw

No limit

2% NICs on earnings over

£962 pw

N/A

£962pw

N/A

1 Employees generally under 21 years and apprentices under 25 years

Employment allowance

2020/21

2019/20

Per business

£4,000

£3,000

Not available if sole employee is a director or employer’s NICs for 2019/20 £100,000 or more.

Earnings limits or thresholds

2020/21

2019/20

Weekly


Annual

Weekly

Annual

Lower earnings limit

£120

£6,240

£118

£6,136

Primary threshold

£183

£9,500

£166

£8,632

Secondary threshold

£169

£8,788

£166

£8,632

Upper earnings limit (and
upper secondary thresholds) 2

£962

£50,000

£962

£50,000

2 Employees generally under 21 years and apprentices under 25 years

 

Class 1A (Employers)

2020/21

2019/20

On car and fuel benefits and most other taxable benefits provided to employees and directors

13.8%

13.8%

 

Class 2 (Self-Employed)

2020/21

2019/20

Flat rate

£3.00 pw £158.60 pa

£2.95 pw
£156.00 pa

Small profits threshold:
No compulsory NICs if profits do not exceed

£6,475 pa

£6,365 pa

 

Class 4 (Self-Employed)

2020/21

2019/20

On annual profits of

£9,500 – £50,000: 9%

£8,632 – £50,000:   9%

 

Over £50,000: 2%

Over £50,000: 2%

 

Voluntary

2020/21

2019/20

Class 3 flat rate

£15.30 pw £795.60 pa

£15.00 pw £780.00 pa

 

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