National insurance

Earnings thresholds and contribution percentages for Class 1 (employed), Class 2 and 4 (self-employed) and Class 3 (voluntary) national insurance contributions.

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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

2022/23:

Earnings per week % (from 6/11/22) % (to 5/11/22)
Up to £242 1 Nil Nil
£242.01 - £967 12 13.25
Over £967 2 3.25
  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.

2021/22:

Earnings per week %
Up to £184 Nil
£184.01 - £967 12
Over £967 2

Entitlement to state pension and other 'contribution-based benefits' is retained for earnings between £120 and £184 per week.

Employers

2022/23:

Earnings per week % (from 6/11/22) % (to 5/11/22)
Up to £175 Nil Nil
Over £175 13.80 15.05

2021/22:

Earnings per week %
Up to £170 Nil
Over £170 13.8

Other National Insurance payable by employers

Class 1A

14.53% on broadly all taxable benefits provided to employees and on certain taxable termination and sporting testimonial payments in excess of £30,000.

Class 1B

14.53% 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.

2022/23:

Class 2 (£)
Flat rate per week 3.15
Small Profits Threshold (per year) 6,725
Lower Profits Limit 11,908

2021/22:

Class 2 (£)
Flat rate per week 3.05
Small Profits Threshold (per year) 6,515

For 2022/23 the point at which the self-employed person starts to pay Class 2 NICs will increase to £11,908. 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.

Class 4

2022/23:

Annual profits %
Up to £11,908 Nil
£11,908.01 - £50,270 9.73
Over £50,270 2.73

2021/22:

Annual profits %
Up to £9,568 Nil
£9,568.01 - £50,270 9
Over £50,270 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.

Flat rate per week: £15.85 (2021/22: £15.40)