National insurance

Class 1

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 to 0% up to the Upper Secondary Threshold of £967 per week. Also applies to veterans in the first 12 months of employment.

Employees Class 1 NIC stop when they reach their 'State Pension age'. The employer's contribution continues.

Employees

2023/24:

Earnings per week%
Up to £242Nil
£242.01 - £96712 up to 5 Jan 2024
10 from 6 Jan 2024
Over £9672

Entitlement to state pension and other 'contribution-based benefits' is retained for earnings between £123 and £242 per week.

2022/23:

Earnings per week% (from 6/11/22)% (to 5/11/22)
Up to £242 1NilNil
£242.01 - £9671213.25
Over £96723.25
  1. £190 until 5 July 2022

Entitlement to state pension and other 'contribution-based benefits' is retained for earnings between £123 and £190 per week.

Employers

2023/24:

Earnings per week%
Up to £175Nil
Over £17513.80

2022/23:

Earnings per week% (from 6/11/22)% (to 5/11/22)
Up to £175NilNil
Over £17513.8015.05

Other National Insurance payable by employers

Class 1A

13.8% on broadly all taxable benefits provided to employees and on certain taxable termination and sporting testimonial payments in excess of £30,000.

Class 1B

13.8% on taxable PAYE Settlement Agreements.

Class 2 and 4 (self-employed)

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.

2023/24:

Class 2(£)
Flat rate per week3.45
Small Profits Threshold (per year)6,725
Lower Profits Limit12,570

For 2023/24 the point at which the self-employed person starts to pay Class 2 NICs is £12,570. This means those with profits between the Small Profits Threshold and the Lower Profits Limit will not pay Class 2 NICs, but will still be able to access entitlement to contributory benefits. A self-employed person with profits below the Small Profits Threshold might decide to carry on paying Class 2 voluntarily to accrue entitlement to the State Pension and other benefits.

2022/23:

Class 2(£)
Flat rate per week3.15
Small Profits Threshold (per year)6,725
Lower Profits Limit11,908

Class 4

2023/24:

Annual profits%
Up to £12,570Nil
£12,570.01 - £50,2709
Over £50,2702

2022/23:

Annual profits%
Up to £11,908Nil
£11,908.01 - £50,2709.73
Over £50,2702.73

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.

Flat rate per week: £17.45 (2022/23: £15.85)

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