National Insurance Contributions
Class 1 (Employees)
|
Employee |
Employer |
| Primary Threshold (PT) |
£242 pw |
N/A |
| Lower earnings limit |
£125 pw |
N/A |
| Upper Earnings Limit (UEL) |
£967 pw |
N/A |
| Rate on earnings between PT and UEL |
8% |
N/A |
| Rate on earnings above UEL |
2% |
N/A |
| Employment allowance per business |
N/A |
£5,000 |
*Nil rate of employee NIC for employees under the age of 21 and apprentices under 25, up to £967 pw.
Employer contributions (at 15%) are also due on most taxable benefits (Class 1A) and on tax paid on an employee's behalf under a PAYE settlement agreement (Class 1B).
Class 2 (Self employed)
|
2025/26 |
2024/25 |
| Flat rate per week |
£3.50 |
£3.45 |
| Small profits threshold (SPT) |
£6,845 |
£6,725 |
Class 3 (Voluntary)
|
2025/26 |
2024/25 |
| Flat rate per week |
£17.74 |
£17.45 |
Class 4 (Self employed)
|
2025/26 |
2024/25 |
| On profits £12,570 - £50,270 |
6% |
6% |
| On profits over £50,270 |
2% |
2% |
* From 2024/25, Class 2 NICs are effectively abolished. If your trade profits exceed the SPT, you will accrue entitlement to state benefits. However, if your trade profits fall below the SPT, you will need to pay Class 2 NICs voluntarily if you need the qualifying year on your NI record for state benefit purposes.
