National Insurance Contributions

National Insurance Contributions – 2021/22

Class 1 Employed

Employee

Employer

NICs main rate

12.0%

13.8%

No NICs on the first

£184 pw

£170 pw

NICs at the main rate charged up to

£967 pw

No limit

2% NICs on earnings over

£967 pw

N/A

Employees’ rates are reduced to 5.85% for married women with valid certificates of election but the 2% rate above £962 still applies.

Employment Allow per employer

Offset against employer’s Class 1 NICs

£4,000

Limits and Thresholds

Weekly

Monthly

Annual

Lower earnings limit

£120

£520

£6,240

Secondary earnings threshold

£170

£737

£8,840

Primary earnings threshold

£184

£797

£9,568

Upper secondary threshold

£967

£4,190

£50,250

NICs main rate

£967

£4,190

£50,250

Additional 

Employee

Employer

Class 1A Employer On most taxable benefits provided to Employees and directors

13.8%

Self-Employed Class 2 Flat rate

£3.05pw

£158.60pa

Self-EmployedSmall profits threshold

£6,515

Voluntary Class 3 Flat rate

£15.40pw

£800.80pa

Class 1 National Insurance Thresholds

£ per week

2020-21

2021-22

Lower Earnings Limit (LEL) – Employees don’t pay NI but get the benefits of paying

£120

£120

Primary Threshold (PT)- Employees start paying NI

£183

£184

Secondary Threshold (ST) – Employers start paying NI

£169

£170

Upper Accrual Point (UAP) – Employees with a contracted-out pension pay a lower rate of NI up to this point

N/A

N/A

Upper Earnings Limit (UEL) – All employees pay a lower rate of NI above this point

£962

£967

Upper Secondary Threshold (UST) – Employers of employees who are under 21 pay zero rate up to this point

£962

£967

Apprentice Upper Secondary Threshold (AUST) – Employers of certain apprentices who are under 25 pay zero rate up to this point

£962

£967

Class 1 National Insurance Rates

Employer Rates

2020-21

2021-22

Rate above the Secondary Threshold

13.8%

13.8%

Rebate for any employees in contracted-out pension schemes

N/A

N/A

Rebate for any employees in money-purchase schemes

N/A

N/A

Class 1A rate on expenses and benefits

13.8%

13.8%

Employer Rates

2020-21

2021-22

Between Primary Threshold and Upper Earnings Limit

12.0%

12.0%

Above Upper Earnings Limit

2.0%

2.0%

Rebate for any employees in contracted-out pension schemes

N/A

N/A

Married women’s reduced rate between primary threshold and upper earnings limit

5.85%

5.85%

Rate for employees deferring National Insurance

2.0%

2.0%

Class 2 and Class 4 National Insurance (self-employed)

Class 2

2020-21

2021-22

Small Profits Threshold amount per year

£5,965

£6,515

Small earnings exception’ amount per year Self-employed people start paying Class 2 NI

N/A

N/A

Rate per week

£2.80

£3.05

Class 4

2020-21

2021-22

Lower Profits Limit – Self-employed people start paying Class 4 NI

£8,060

£9,568

Upper Profits Limit – Self-employed people pay a lower rate

£43,000

£50,270

Rate between Lower Profits Limit and Upper Profits Limit

9.0%

9.0%

Rate above Upper Profits Limit

2.0%

2.0%

For more information, visit the HMRC website: HMRC National Insurance Contributions

Reproduced under the Open Government License – http://www.hmrc.gov.uk/copyright/

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