Class 1

Employee

Employer

NICs rate

12%

13.8%

No NICs for employees generally on the first

£184 pw

£170 pw

No NICs for younger/veteran employees* on the first

£184 pw

£967 pw

NICs rate charged up to

£967 pw

No limit

2% NICs on earnings over

£967 pw

N/A

Employment Allowance

£4,000

Per business – not available if sole employee is a director or employer’s NICs for 20/21 £100,000 or more

Limits and thresholds

Weekly

Monthly

Annual

Lower earnings limit

£120

£520

£6,240

Primary threshold

£184

£797

£9,568

Secondary threshold

£170

£737

£8,840

Upper earnings limit (and upper secondary thresholds*)

£967

£4,189

£50,270

* Employees generally under 21 years and apprentices under 25 years.  Veterans in first 12 months of civilian employment from April 2021.

Class 1A Employer On car and fuel benefits and most other taxable benefits provided to employees and directors

13.8%

Class 2 Self-employed Flat rate per week

£3.05

(£158.60 pa)

Small profits threshold No compulsory NICs if annual profits less than        

£6,515

Class 4 Self-employed On annual profits of

£9,568 to £50,270:

9%

Over £50,270:

2%

Class 3 Voluntary flat rate per week

£15.40

(£800.80 pa)