National insurance contributions (NICs)

2018/19 Employee
(Primary)
Employer
(Secondary)
Class 1
Payable on weekly earnings of    
Below £116 (lower earnings limit) Nil -
£116 to £162 (primary threshold) *0% -
Up to £162 (secondary threshold) - Nil
Above £162 - 13.8%
£162.01 - £892 (upper earnings limit) **12% -
£162.01 - £892 (under 21s and apprentices under 25) - 0%
Above £892 **2% -
*No NICs are actually payable but a notional Class 1 NIC is deemed to have been paid; this protects contributory benefit entitlement.
**Over State Pension age, the employee contribution is generally nil.
Employment allowance     up to £3,000 (per year)
Class 1A On relevant benefits   13.8%
Class 2 Self-employed £2.95 per week
Small profits threshold £6,205 per annum
Class 3 Voluntary £14.65 per week
Class 4 Self-employed on annual profits  
£8,424 - £46,350 *9%
Excess over £46,350 *2%
*Exemption applies if State Pension age is reached by 6 April 2018.

In a change to the date originally announced, Class 2 NICs are set to be abolished from April 2019.

As previously announced, the government will no longer proceed with an increase to the main rate of Class 4 NICs from 9% to 10% in April 2018, and to 11% in April 2019.


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