National insurance contributions

 

Class 1 Employees

2021/22

2020/21

Employee

Employer

Employee

Employer

NICs rate

12%

13.8%

12%

13.8%

No NICs for employees generally on the first

£184 pw

£170 pw

£183 pw

£169 pw

No NICs for younger employees/veterans1 on the first

£184 pw

£967 pw

£183 pw

£962 pw

NICs rate charged up to

£967 pw

No limit

£962 pw

No limit

2% NICs on earnings over

£967 pw

N/A

£962 pw

N/A

1Employees generally under 21 years and apprentices under 25 years. Veterans in first 12 months of civilian employment from April 2021.

Employment allowance

2021/22

2020/21

Per business

£4,000

£4,000

 

Earnings limits and thresholds

2021/22

2020/21

Weekly

Annual

Weekly

Annual

Lower earnings limit

£120

£6,240

£120

£6,240

Primary threshold

£184

£9,568

£183

£9,500

Secondary threshold

£170

£8,840

£169

£8,788

Upper earnings limit
(and upper secondary thresholds2)

£967

£50,270

£962

£50,000

2 Employees generally under 21 years, apprentices under 25 years and veterans in first 12 months of civilian employment from April 2021.

Class 1A Employers

2021/22

2020/21

Most taxable employee benefits

13.8%

13.8%

Class 2 Self-employed

2021/22

2020/21

Flat rate

£3.05 pw
£158.60 pa

£3.05 pw
£158.60 pa

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


£6,515 pa


£6,475 pa

Class 4 Self-employed

2021/22

2020/21

On profits

£9,568–£50,270 pa 9%

£9,500–£50,000 pa 9%

 

Over £50,270 pa 2%

Over £50,000 pa 2%

Voluntary

2021/22

2020/21

Class 3 flat rate

£15.40 pw  £800.80 pa

£15.30 pw  £795.60 pa

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