National insurance contributions
National insurance contributions and rates in 2016/17
|Earnings per week||Earnings per week|
|Up to £112||Nil*||Up to £156||0%|
|From £112.01 to £155||0%||Over £156||13.8%*|
|From £155.01 to £827||12%||Over state retirement age||13.8%|
|Over state retirement age||0%|
*0% for employees under 21 and apprentices under 25 on earnings up to £827 per week.
* Entitlement to contribution-based benefits retained for earnings between £112 and £155 per week
** The rate is 0% in relation to employees under 21 and apprentices under 25 on earnings up to £827 per week
*** Per employer, per year. One claim only for companies in a group or under common control. Not available if the only paid employee is a director.
|Class 1A (on relevant benefits)||13.8%|
|Class 1B (on PAYE settlement arrangement)||13.8%|
|Class 2 (self employed)||£2.80 per week|
|Class 2 contributions - share fishermen||£3.45 per week|
|Class 2 contributions - volunteer development workers||£5.60 per week|
|Small profits threshold||£5,965 per annum|
|Contributions cease at state retirement age|
|Class 3 (voluntary)||£14.10 per week|
|Class 4* (Self employed on profits)|
|£8,060 to £43,000||9%|
|*Exemption applies if state retirement age was reached by 6 April 2016.|
|Class 1||£4,197.60 + 2% of earnings over £43,000 pa.|
|Class 2 and Class 4||£3,278.15 + 2% of profits over £43,000 pa.|
- For children under 16, and employees over state pension age there are no national insurance contributions payable, but employers' contributions remain payable.
- No employers national insurance contributions are payable for those under 21, or 25 for an apprentice.
2017 and beyond
The employee and employer class 1 national insurance thresholds are to be aligned from April 2017, meaning that both employees and employers will start paying national insurance on weekly earnings above £157.
Autumn Statement 2016 confirmed that self-employed contributory benefit entitlement will instead be accessed through the payment of class 3 or class 4 national insurance contributions. All self-employed women will be able to access the standard rate of maternity allowance.