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National Insurance

Class 1

Employees

Employers*

Weekly earnings 2017/2018

 

 

On first £157

Over 21

NIL

NIL

 

Under 21

NIL

NIL

£157.01 to £866

Over 21

12%

13.8%

 

Under 21 or apprentice under 25

12%

NIL

£886.01 and above

Over 21

2%

13.8%

 

Under 21

2%

13.8%


Class 1A

13.8% NIC on benefits in kind payable on 19th/22nd July after the end of the tax year.

Class 1B

13.8% payable on PAYE Settlement Agreement benefits, tax due 19th/22nd October after the end of the tax year.

Class 2

Self employed flat rate of £2.85 per week.

Class 3

Voluntary contributions at a rate of £14.25 per week.

 

 

Class 4 - Self-employed earning rate

2017/18

2016/17

Profits between £8,164 (£8,060) and £45,000 (£43,000) per annum

9%

9%

Profits in excess of £45,000 (£43,000) per annum

2%

2%

 

 

 

* EMPLOYMENT ALOWANCE available from 6 April 2015. Reduction in Employer's NIC of £3000 (maximum, or limited to actual Employer's NIC, if lower) for the year.

Apprenticeship Levy: From 6 April 2017, employers will be required to pay the Apprenticeship Levy. The Levy is set at a rate of 0.5% of an employer's annual pay bill and will be collected through the PAYE system. The pay bill is the total amount of earnings liable to employer's Class 1 NIC, including earnings below the secondary threshold. Where the age-related secondary percentage of MC is 0% e.g for employees under the age of 21, such earnings are included in calculating the pay bill.

Employers receive an annual allowance of £15,000 to offset against payment of the Levy, and therefore the Levy will be payable only by employers who have to pay bilis in excess of £3million per year. Where two or more companies are connected, the allowance is spread between the companies.


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