Tax rates & allowances

National Insurance Contributions

Class 1 (Employees)

  Employee Employer
Main NIC rate 12.0% 13.8%
No NIC on first £155pw £156pw
Main rate* charged up to £827pw no limit
2% rate on earnings above £827pw N/A
Employment allowance per business** N/A £3,000

* Nil rate of employer NIC for employees under the age of 21 and apprentices under 25, up to £827pw.

Employer contributions (at 13.8%) are also due on most taxable benefits (Class 1A) and on tax paid on an employee's behalf under a PAYE settlement agreement (Class 1B).

** Some businesses do not qualify, including certain sole director companies.

Class 2 (Self-employed)

Flat rate per week £2.80
Small profits threshold £5,965

Class 3 (Voluntary)

Class 3: Flat rate per week £14.10
Class 3A: Contributions vary with age

Class 4 (Self-employed)

On profits £8,061 - £43,000 9.0%
On profits over £43,000 2.0%
Tax rates 2017-2018PDF document