Tax rates & allowances

National Insurance Contributions

National Insurance Contributions

Class 1 (Employees)

  Employee Employer
Main NIC rate 12.0% 13.8%
No NIC on first £162pw £162pw
Main rate* charged up to £892pw no limit
2% rate on earnings above £892pw 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 £892pw.

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 £2.95
Small profits threshold £6,205

Class 3 (Voluntary)

Flat rate per week £14.65

Class 4 (Self-employed)

On profits £8,424 – £46,350 9.0%
On profits over £46,350 2.0%
Tax rates 2018-2019PDF document