National Insurance Contributions

If you are looking at National Insurance or planning your finances, please feel free to contact us. We can chat through your specific circumstances to help you plan your tax efficiently.

2014 – 2015

Class 1 (not contracted out) Employer Employee
Payable on weekly earnings of
Up to £111 (lower earnings limit) Nil Nil
£111 -£153 (Primary threshold and Secondary threshold) Nil  Nil
£153 – £805 (upper earnings limit) 13.8% 12%
Over £805 13.8% 2%
Employment Allowance (per employer, per year) £2,000 Nil
Over state retirement age, the employee contribution is generally Nil.
 Class 1A (on relevant benefits)  13.8%  Nil
Class 1B (on PAYE settlement arrangement) 13.8% Nil
Class 2 (Self employed) £2.75 per week
Limit of net earnings for exemption £5,885 per annum
Class 3 (Voluntary) £13.90 per week
Class 4* (Self employed on profits)
 £7,956 – £41,865  9%
Excess over £41,865 2%
*Exemption applies if state retirement age was reached by 6 April 2014

2015 – 2016

Class 1 (not contracted out) Employer Employee
 Payable on a weekly earnings of
 Up to £112 (lower earnings limit)  Nil  Nil
 £112 – £155 (Primary threshold)  Nil  Nil
 £155 -£156 (Secondary Threshold)  Nil  12%
 £156 -£815 (upper earnings limit)  13.8%  12%
 Over £815  13.8%  2%
 Employment allowance (per employer, per year)  £2,000  Nil
Over state retirement age, the employee contribution is generally Nil
Class 1A (on relevant benefits) 13.8% Nil
Class 1B (on PAYE settlement arrangement) 13.8% Nil
Class 2 (Self employed) £2.80 per week
Limit of net earnings for exception £5,965 per annum
Class 3 (Voluntary) £14.10 per week
Class 4 *(Self employed on profits)
 £8,060 -£42,385  9%
Excess over £42,385 2%

Disclaimer:

The information given have been provided as a helpful reference point. The Tax Rates provide a guide only and your specific circumstances are best discussed directly with us.

No action should be taken without seeking the appropriate professional or legal advice. The authors accept no responsibility whatsoever for any loss occasioned by anyone acting on information within this website.