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National Insurance
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National Insurance
2021/22
|
2021/22 |
Class 1 Primary – Employees’ NIC |
|||
|
Category Letter |
Below £120 |
£120 – £184 |
£184 – £967 |
Over £967 |
|
|
Lower Earnings Limit |
Lower Earnings to Primary Threshold |
Primary Threshold to Upper Limit |
Above Upper Limit |
|
A |
0% |
0% |
12% |
2% |
|
B |
0% |
0% |
5.85% |
2% |
|
C |
N/A |
N/A |
N/A |
N/A |
|
H |
0% |
0% |
12% |
2% |
|
J |
0% |
0% |
2% |
2% |
|
M |
0% |
0% |
12% |
2% |
|
Z |
0% |
0% |
2% |
2% |
|
2020/21 |
Class 1 Primary – Employees’ NIC |
|||
|
Category Letter |
Below £120 |
£120 – £184 |
£184 – £967 |
Over £967 |
|
|
Lower Earnings Limit |
Lower Earnings to Primary Threshold |
Primary Threshold to Upper Limit |
Above Upper Limit |
|
A |
0% |
0% |
12% |
2% |
|
B |
0% |
0% |
5.85% |
2% |
|
C |
N/A |
N/A |
N/A |
N/A |
|
H |
0% |
0% |
12% |
2% |
|
J |
0% |
0% |
2% |
2% |
|
M |
0% |
0% |
12% |
2% |
|
Z |
0% |
0% |
2% |
2% |
|
Other National Insurance Classes |
||
|
Class |
Rate |
Detail |
|
Class 1A |
13.8% |
On benefits in kind. Payable on 19th (paper) or 22nd July (online) following the end of the tax year. |
|
Class 1B |
13.8% |
On PAYE Settlement Agreement benefits. Payable by 19th (Paper) or 22nd (Electronic) October following the end of the tax year. |
|
Class 2 |
£3.05 per week, mandatory above £6,475 profits per annum |
Voluntary contributions below annual profits of £6,475. £3.00 in 2019/20 |
|
Class 3 |
£15.30 per week |
Voluntary contributions – £15.00 in 2019/20 |
|
|
|
|
|
Class 4 – Self-employed |
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|
Profits |
2021/22 |
2020/21 |
|
Below £9,568 |
0% |
0% |
|
Between £9,568 and £50,270 per annum |
9% |
9% |
|
Over £50,000 per annum |
2% |
2% |
|
|
|
|
|
NIC Thresholds |
|
|
Category |
Per Week |
|
Lower Earnings Limit |
£120.00 |
|
Primary (Employee) Threshold |
£184.00 |
|
Secondary (Employer) Threshold |
£170.00 |
|
Below £9,500 |
£967.00 |
|
Apprentice Upper Secondary Threshold (Under 25) |
£967.00 |
|
Upper Earnings Limit |
£967.00 |
|
|
|
|
National Insurance Category Letters |
|
|
Letter |
Employee group |
|
A |
All employees except those who fall into below categories |
|
B |
Eligible married women and widows paying reduced NIC |
|
C |
Over state pension age |
|
J |
Deferred NIC through already paying in other employment |
|
H |
Apprentice under 25 |
|
M |
Under 21 |
|
X |
Does not pay NIC e.g. under 16 |
|
Z |
Under 21 deferred through already paying in other employment |
|
|
|
Notes
Employment Allowance – Reduction in Employer’s NIC of up to £4,000 per annum (limited to Employer’s actual NIC). Effective from 6 April 2020.
Apprenticeship Levy – Employers are be required to pay the Levy, which is set at a rate of 0.5% of an employer’s annual pay bill. This is collected through the PAYE system. The pay bill is the total amount of earnings liable to employer’s Class 1 NIC, including earnings below the secondary threshold. Where the age-related secondary percentage of MC is 0% e.g for employees under the age of 21, such earnings are included in calculating the pay bill.
Employers receive an annual allowance of £15,000 to offset against payment of the Levy, and therefore the Levy will only be payable by employers who have to pay bilis in excess of £3million per year. Where two or more companies are connected, the allowance is spread between the companies.
2019/20
|
2019/20 |
Employee’s NIC |
|||
|
Category Letter |
Below £118 |
£118 – £166 |
£166.01 – £962 |
|
|
|
(£116) per week |
(£116 – £162) per week |
£162.02 – £892) per week |
Over £966 (£892) per week |
|
A |
0% |
0% |
12% |
2% |
|
B |
0% |
0% |
5.85% |
2% |
|
C |
N/A |
N/A |
N/A |
N/A |
|
H |
0% |
0% |
12% |
2% |
|
J |
0% |
0% |
2% |
2% |
|
M |
0% |
0% |
12% |
2% |
|
Z |
0% |
0% |
2% |
2% |
|
Class 1 |
Employees |
Employers* |
|
|
Weekly earnings 2019/20 |
|
|
|
|
On first £166 |
Over 21 |
NIL |
NIL |
|
|
Under 21 |
NIL |
NIL |
|
£166.01 to £962 |
Over 21 |
12% |
13.8% |
|
|
Under 21 apprentice |
12% |
NIL |
|
£962 and above |
Over 21 |
2% |
13.8% |
|
|
Under 21 |
2% |
13.8% |
2018/19
|
2018/19 |
Employee’s NIC |
|||
|
Category Letter |
Below £118 |
£118 – £166 |
£166.01 – £962 |
|
|
|
(£116) per week |
(£116 – £162) per week |
£162.02 – £892) per week |
Over £966 (£892) per week |
|
A |
0% |
0% |
13.8% |
13.8% |
|
B |
0% |
0% |
13.8% |
13.8% |
|
C |
N/A |
N/A |
13.8% |
13.8% |
|
H |
0% |
0% |
0% |
13.8% |
|
J |
0% |
0% |
13.8% |
13.8% |
|
M |
0% |
0% |
0% |
13.8% |
|
Z |
0% |
0% |
0% |
13.8% |
|
Class 1 |
Employees |
Employers* |
|
|
Weekly earnings 2018/19 |
|
|
|
|
On first £162 |
Over 21 |
NIL |
NIL |
|
|
Under 21 |
NIL |
NIL |
|
£162.01 to £892 |
Over 21 |
12% |
13.8% |
|
|
Under 21 apprentice |
12% |
NIL |
|
£892.01 and above |
Over 21 |
2% |
13.8% |
|
|
Under 21 |
2% |
13.8% |