National Insurance

There are different classes of National Insurance (NI). The type people pay depends on their employment status and how much they earn.

 

1. Class 1 National Insurance thresholds

Employers and employees pay Class 1 NI depending on how much the employee earns. You can view these earnings thresholds by week or by month.

 

1.1 Weekly thresholds

£ per week 2016 to 2017 2015 to 2016
Lower Earnings Limit (LEL)
Employees don't pay NI but get the benefits of paying
£112 £112
Primary Threshold (PT)
Employees start paying NI
£155 £155
Secondary Threshold (ST)
Employers start paying NI
£156 £156
Upper Accrual Point (UAP)
Employees with a contracted-out pension pay a lower rate of NI up to this point
N/A £770
Upper Earnings Limit (UEL)
All employees pay a lower rate of NI above this point
£827 £815
Upper Secondary Threshold (UST)
Employers of employees who are under 21 pay zero rate up to this point
£827 £815
Apprentice Upper Secondary Threshold (AUST)
Employers of certain apprentices who are under 25 pay zero rate up to this point
£827 N/A

 

1.2 Monthly thresholds

£ per week 2016-17 2015-16
Lower Earnings Limit (LEL)
Employees don't pay NI but get the benefits of paying
£486 £486
Primary Threshold (PT)
Employees start paying NI
£672 £672
Secondary Threshold (ST)
Employers start paying NI
£676 £676
Upper Accrual Point (UAP)
Employees with a contracted-out pension pay a lower rate of NI up to this point
N/A £3,337
Upper Earnings Limit (UEL)
All employees pay a lower rate of NI above this point
£3,583 £3,582
Upper Secondary Threshold (UST)
Employers of employees who are under 21 pay zero rate up to this point
£3,583 £3,582
Apprentice Upper Secondary Threshold (AUST)
Employers of certain apprentices who are under 25 pay zero rate up to this point
£3,583 N/A

 

2. Class 1 National Insurance rates

 

2.1 Employer rates

£ per week 2016 to 2017 2015 to 2016
Rate above the Secondary Threshold 13.8% 13.8%
Rate below Upper Secondary Threshold 0% 0%
Rate below Apprentice Upper Secondary Threshold 0% N/A
Rebate for any employees in contracted-out pension schemes N/A 3.4%
Rebate for any employees in money-purchase schemes N/A N/A
Class 1A rate on expenses and benefits 13.8% 13.8%

 

2.2 Employee rates

£ per week 2016 to 2017 2015 to 2016
Between Primary Threshold and Upper Earnings Limit 12% 12%
Above Upper Earnings Limit 2% 2%
Rebate for employees in contracted-out workplace pension schemes N/A 1.4%
Married women's reduced rate between primary threshold and upper earnings limit 5.85% 5.85%
Rate for employees deferring National Insurance 2% 2%

 

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

 

3.1 Class 2

£ per week 2016 to 2017 2015 to 2016
Small Profits Threshold amount per year £5965 £5965
'Small earnings exception' amount per year
Self-employed people start paying Class 2 NI
N/A abolished
Rate per week £2.80 £2.80

 

3.2 Class 4

£ per year 2016 to 2017 2015 to 2016
Lower Profits Limit
Self-employed people start paying Class 4 NI
£8,060 £8,060
Upper Profits Limit
Self-employed people pay a lower rate
£43,000 £42,385
Rate between Lower Profits Limit and Upper Profits Limit 9% 9%
Rate above Upper Profits Limit 2% 2%

 

3.3 Special rates

£ per week 2016 to 2017 2015 to 2016
Special Class 2 rate for share fishermen £3.45 £3.45
Special Class 2 rate for volunteer development workers £5.60 £5.60
Additional Class 4 rate when deferring National Insurance 2% 2%

 

4. Class 3 National Insurance (voluntary)

£ per week 2016 to 2017 2015 to 2016
Class 3 rate £14.10 £14.10

 

5. Historical and future rates

You can view National Insurance rates and thresholds for previous tax years.

There will be new National Insurance rates and thresholds from 6 April 2016.

 

6. Income Tax rates

You can see Income Tax rates for the current and previous tax years.

 

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