2017/18
2016/17

  • Employees start paying Class 1 NIC from age 16 (if sufficient earnings).
  • Employers pay Class 1 NIC in accordance with the table below.
  • Employer NIC for employees under the age of 21 and apprentices under the age of 25 is reduced from the normal rate of 13.8% to 0% up to the Upper Secondary Threshold.
  • Employees’ Class 1 NIC stop when they reach their State Pension age. The employer’s contribution continues.

Employees – Class 1 – 2017/18

Earnings per week %
Up to £157 Nil*
£157.01 – £866 12
Over £866 2

* Entitlement to state pension and other contribution-based benefits is retained for earnings between £113 and £157 per week.

Employers – Class 1 – 2017/18

Earnings per week %
Up to £157 Nil
Over £157 13.8
Upper Secondary Threshold (for under 21s and apprentices under 25)

Up to £866
0%

Other National Insurance payable by employers


Class 1A

– 13.8% on broadly all taxable benefits provided to employees


Class 1B

– 13.8% on PAYE Settlement Agreements

Self-employed – Class 2 and 4

  • A self-employed person starts paying Class 2 and Class 4 NIC from 16 or over (if sufficient profits)
  • Class 2 NIC stop when a person reaches State Pension age
  • Class 4 NIC stop from the start of the tax year after the one in which the person reaches State Pension age.

Self-employed – Class 2 – 2017/18

Flat rate per week £2.85
Small Profits Threshold* £6,025 per year

* No Class 2 is due if the amount of trading profits assessable to income tax and Class 4 NIC is below this figure. However, a person might decide to carry on paying class 2 voluntarily to accrue entitlement to the State Pension and entitlement to other benefits.  

Class 4 – 2017/18

Annual profits %
Up to £8,164 Nil
£8,164.01 – £45,000 9
Over 45,000 2

Class 3

  • A person needs 35 years (30 years if State Pension age is before 6 April 2016) of NIC to get a full State Pension.
  • Class 3 voluntary contributions can be paid to fill or avoid gaps in a NI record.

Class 3 – 2017/18

Flat rate per week £14.25

  • Employees start paying Class 1 NIC from age 16 (if sufficient earnings).
  • Employers pay Class 1 NIC in accordance with the table below.
  • Employer NIC for employees under the age of 21 and apprentices under the age of 25 is reduced from the normal rate of 13.8% to 0% up to the Upper Secondary Threshold.
  • Employees’ Class 1 NIC stop when they reach their State Pension age. The employer’s contribution continues.

Employees – Class 1 – 2016/17

Earnings per week %
Up to £155 Nil*
£155.01 – £827 12
Over £827 2

* Entitlement to state pension and other contribution-based benefits is retained for earnings between £112 and £155 per week.

Employers – Class 1 – 2016/17

Earnings per week %
Up to £156 Nil
Over £156 13.8
Upper Secondary Threshold (for under 21s and apprentices under 25)

Up to £827
0%

Other National Insurance payable by employers


Class 1A

– 13.8% on broadly all taxable benefits provided to employees


Class 1B

– 13.8% on PAYE Settlement Agreements

Self-employed – Class 2 and 4

  • A self-employed person starts paying Class 2 and Class 4 NIC from 16 or over (if sufficient profits)
  • Class 2 NIC stop when a person reaches State Pension age
  • Class 4 NIC stop from the start of the tax year after the one in which the person reaches State Pension age.

Self-employed – Class 2 – 2016/17 and 2015/16

Flat rate per week £2.80
Small Profits Threshold* £5,965 per year

* No Class 2 is due if the amount of trading profits assessable to income tax and Class 4 NIC is below this figure. However, a person might decide to carry on paying class 2 voluntarily to accrue entitlement to the State Pension and entitlement to other benefits.

Class 4 – 2016/17

Annual profits %
Up to £8,060 Nil
£8,060.01 – £43,000 9
Over 43,000 2

Class 3

  • A person needs 35 years (30 years if State Pension age is before 6 April 2016) of NIC to get a full State Pension.
  • Class 3 voluntary contributions can be paid to fill or avoid gaps in a NI record.

Class 3 – 2016/17 and 2015/16

Flat rate per week £14.10