National Insurance contributions (NIC) – rates and allowances

2019/20
2018/19

Employees start paying Class 1 NIC from age 16 (if sufficient earnings).
Employers pay Class 1 NIC in accordance with the table below.
Employer NIC for employees under the age of 21 and apprentices under the age of 25 is reduced from the normal rate of 13.8% to 0% up to the Upper Secondary Threshold.
Employees’ Class 1 NIC stop when they reach their State Pension age. The employer’s contribution continues.

Employees – Class 1 – 2019/20

Earnings per week	%
Up to £166	Nil
£166.01 – £962	12
Over £962	2

Entitlement to state pension and other contribution-based benefits is retained for earnings between £118 and £166 per week.

Employers – Class 1 – 2019/20

Earnings per week	%
Up to £166	Nil
Over £166	13.8
Upper Secondary Threshold (for under 21s and apprentices under 25) Up to £962	0%

Other National Insurance payable by employers

Class 1A – 13.8% on broadly all taxable benefits provided to employees

Class 1B – 13.8% on PAYE Settlement Agreements

Self-employed – Class 2 and 4

A self-employed person starts paying Class 2 and Class 4 NIC from 16 or over (if sufficient profits)
Class 2 NIC stop when a person reaches State Pension age
Class 4 NIC stop from the start of the tax year after the one in which the person reaches State Pension age.

Self-employed – Class 2 – 2019/20

Flat rate per week	£3.00
Small Profits Threshold	£6,365 per year

No Class 2 is due if the amount of trading profits assessable to income tax and Class 4 NIC is below this figure. However, a person might decide to carry on paying Class 2 voluntarily to accrue entitlement to the State Pension and entitlement to other benefits.

Class 4 – 2019/20

Annual profits	%
Up to £8,632	Nil
£8,632.01 – £50,000	9
Over £50,000	2

Class 3

A person needs 35 years (30 years if State Pension age is before 6 April 2016) of NIC to get a full State Pension.
Class 3 voluntary contributions can be paid to fill or avoid gaps in a NI record.

Class 3 – 2019/20

Flat rate per week £15.00

Employees start paying Class 1 NIC from age 16 (if sufficient earnings).
Employers pay Class 1 NIC in accordance with the table below.
Employer NIC for employees under the age of 21 and apprentices under the age of 25 is reduced from the normal rate of 13.8% to 0% up to the Upper Secondary Threshold.
Employees’ Class 1 NIC stop when they reach their State Pension age . The employer’s contribution continues.

Employees – Class 1 – 2018/19

Earnings per week	%
Up to £162	Nil*
£162.01 – £892	12
Over £892	2

* Entitlement to state pension and other contribution-based benefits is retained for earnings between £116 and £162 per week.

Employers – Class 1 – 2018/19

Earnings per week	%
Up to £162	Nil
Over £162	13.8
Upper Secondary Threshold (for under 21s and apprentices under 25) Up to £892	0%

Other National Insurance payable by employers

Class 1A – 13.8% on broadly all taxable benefits provided to employees

Class 1B – 13.8% on PAYE Settlement Agreements

Self-employed – Class 2 and 4

A self-employed person starts paying Class 2 and Class 4 NIC from 16 or over (if sufficient profits)
Class 2 NIC stop when a person reaches State Pension age
Class 4 NIC stop from the start of the tax year after the one in which the person reaches State Pension age.

Self-employed – Class 2 – 2018/19

Flat rate per week	£2.95
Small Profits Threshold*	£6,205 per year

* No Class 2 is due if the amount of trading profits assessable to income tax and Class 4 NIC is below this figure. However, a person might decide to carry on paying Class 2 voluntarily to accrue entitlement to the State Pension and entitlement to other benefits.

Class 4 – 2018/19

Annual profits	%
Up to £8,424	Nil
£8,424.01 – £46,350	9
Over 46,350	2

Class 3

A person needs 35 years (30 years if State Pension age is before 6 April 2016) of NIC to get a full State Pension.
Class 3 voluntary contributions can be paid to fill or avoid gaps in a NI record.

Class 3 – 2018/19

Flat rate per week £14.65