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National Insurance

2017/18 Employee
(primary)
Employer
(secondary)
Class 1
Payable on weekly earnings of:
    Below £113 (lower earnings limit) Nil
    £113 – £157 (primary threshold) *0%
    Up to £157 (secondary threshold) Nil
    Above £157 13.8%
    £157.01 – £866 (upper earnings limit) **12%
    £157.01 – £866 (under 21s and apprentices under 25) 0%
    Above £866 **2%
*No NICs are actually payable but a notional Class 1 NIC is deemed to have been paid; this protects contributory benefit entitlement.
**Over state pension age, the employee contribution is generally nil.
Employment Allowance Up to £3,000 (per year)
Class 1A On relevant benefits 13.8%
Class 2 Self employed £2.85 per week
Small profits threshold £6,025 per annum
Class 3 Voluntary £14.25 per week
Class 4 Self employed on annual profits
£8,164 – £45,000 *9%
Excess over £45,000 *2%
*Exemption applies if state pension age was reached by 6 April 2017.

Future changes

Class 2 NICs will be abolished from April 2018. The government will legislate to increase the main rate of Class 4 NICs from 9% to 10% with effect from 6 April 2018 and from 10% to 11% with effect from 6 April 2019.