vap
chartered certified accountants
CLIENTS page
CLIENTS page
|
Employee Class 1 NIC primary |
|
2024/25 |
2023/24 |
NIC rate |
Notes |
|
LEL: Lower earnings limit |
per week per month per year |
£123 £533 £6,396 |
£123 £533 £6,396 |
0% |
Earnings below the lower earnings limit do not carry entitlement to benefits and no NIC is payable. |
|
ET: Earnings threshold |
per week per month per year |
£242 £1,048 £12,570 |
£242 £1,048 £12,570 |
0% |
No NIC is payable on earnings below the ET but earnings between the LEL and ET carry entitlement to benefits. |
|
UEL: Upper earnings limit Total NIC = (UEL-ET) x 8% (12%/10%) |
per week per month per year |
£967 £4,189 £50,270 |
£967 £4,189 £50,270 |
8% (12%/ 10%) |
From 6.4.2024 the rate is 8%. In 2023/24 the rate was 12% from 6.4.2023 to 5.1.2024 and 10% from 6.1.2024. These are the main rates for Category A (most earners). Category C (pensionable age) do not pay this. The state pension age for men and women is currently 66 -for women born before 6.4.1950 - link |
|
Above UEL Total NIC = above UEL x 2% + (UEL-ET) x 8% |
per week per month per year |
> £967 > £4,189 > £50,270 |
> £967 > £4,189 > £50,270 |
2% |
|
CLASS 2 (Self Employed) |
2024/25 |
2023/24 |
Notes |
|
Flat rate per week - voluntary from 6.4.2024 |
£3.45 |
£3.45 |
Paid by the self employed per week. Paying Class 2 NIC entitles you to certain benefits e.g. 2023/24 - £3.45 x 52 = £179.40. Voluntary is £3.45 per week for those earning less than £6,725. |
|
Special Class 2 for share fishermen - per week |
£4.10 |
£4.10 | |
|
Special Class 2 for volunteer development workers |
£6.15 |
£6.15 | |
|
Small earnings exception. |
< £6,725 |
< £6,725 |
|
CLASS 3 (Non-Employed - voluntary) |
2024/25 |
2023/24 |
Notes |
|
Rate per week |
£17.45 |
£17.45 |
Voluntary and fills in gaps in NIC record. |
|
CLASS 4 (Self Employed on Profits) |
2024/25 |
2023/24 |
Notes |
|
Annual lower profit limit (LPL) Annual upper profit limit (UPL) |
£12,570 £50,270 |
£12,570 £50,270 |
You pay this if you are self employed and your profits are over a certain amount. Under 16’s and those who reached state pension age at the start of the tax year do not pay Class 4 NIC. |
|
Class 4 rate on profit between LPL and UPL |
6% |
9% | |
|
Class 4 rate on profit above UPL |
2% |
2% |
National Insurance Contributions are payable by both employees and employers on earnings, subject to certain exceptions. Employees pay Class 1 NICs once their earnings exceed the earnings threshold (ET) - see below.
Employees over state pension age, or those under 16 years of age, do not pay Class 1 NICs. Employees with more than one job pay Class 1 NICs for each job, unless they apply for deferment in respect of the other jobs.
Employers do not pay Class 1 NICs for employees under 16, those earning under the earnings threshold and apprentices under 25. Employers pay Class 1A NICs on most benefits provided to relevant employees at the employers secondary Class 1 rates.
National Insurance
|
Employer Class 1 NIC (secondary) |
|
2024/25 |
2023/24 |
NIC rate |
Notes |
|
Below Secondary threshold (ET) |
per week per month per year |
£175 £758 £9,100 |
£175 £758 £9,100 |
0% |
No employer NIC is payable for under 21's provided their earnings are less than the UEL above. From April 2016 no employer NIC is payable on earnings up to UEL for apprentices aged under 25. Those working in Freeports have different thresholds. |
|
Above Secondary threshold (UEL) |
per week per month per year |
> £175 > £758 > £9,100 |
> £175 > £758 > £9,100 |
13.8% |
|
EMPLOYER’S NIC ALLOWANCE |
2024/25 |
2023/24 |
Notes |
|
Employers can claim this allowance against their liability for employer NIC contributions. This cannot be claimed for off-payroll workers and additional rules relating to state aid - rules in the link below: |
£5,000 |
£5,000 |
Allowance not available to associated companies, from April 2016 to a company where a director is the sole employee and, from 1.4.2020, companies which have E’rs NICs > £100K in the previous tax year. |