National insurance contributions

Class 1 (Employees)

2017/18

2016/17

Employee

Employer

Employee

Employer

NIC rate

12%

13.8%

12%

13.8%

No NICs on the first:

Under 21*

£157 pw

£866 pw

£155 pw

£827 pw

21 & over*

£157 pw

£157 pw

£155 pw

£156 pw

NICs rate charged up to

£866 pw

No limit

£827 pw

No limit

2% NICs on earnings over

£866 pw

N/A

£827 pw

N/A

* 25 years for apprentices

 

Employment allowance

2017/18

2016/17

Per business

£3,000

£3,000

Not available if a director is the sole employee

 



Earnings limits or thresholds

2017/18

2016/17

Weekly
£

Monthly
£

Annual
£

Weekly
£

Monthly
£

Annual
£

Lower earnings limit

113

490

5,876

112

486

5,824

Primary earnings limit

157

680

8,164

155

672

8,060

Secondary earnings threshold

157

680

8,164

156

676

8,112

Upper earnings limit and
Upper secondary earnings threshold (under 21)*

866

3,750

45,000

827

3,583

43,000

* Under 25 years for apprentices

 

Class 1A (Employers)

2017/18

2016/17

Most taxable employee benefits

13.8%

13.8%

Class 2 (Self-Employed)

2017/18

2016/17

Flat rate

£2.85 pw £148.20 pa

£2.80 pw £145.60 pa

Small profits threshold

£6,025 pa

£5,965 pa

Class 4 (Self-Employed)

2017/18

2016/17

On profits

£8,164-£45,000 pa 9%

£8,060-£43,000 pa 9%

Over £45,000 pa 2%

Over £43,000 pa 2%

Voluntary

2017/18

2016/17

Class 3 flat rate

£14.25 pw £741 pa

£14.10 pw £733.20 pa

Class 3A if state pension age before 6/4/16

N/A

amount depending on age

 

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