National Insurance Contributions (NICs) – November 2017 Budget Report
| 2018/19 | Employee (primary) |
Employer (secondary) |
|
|---|---|---|---|
| Class 1 | |||
| Payable on weekly earnings of: | |||
| Below £116 (lower earnings limit) | Nil | – | |
| £116 – £162 (primary threshold) | *0% | – | |
| Up to £162 (secondary threshold) | – | Nil | |
| Above £162 | – | 13.8% | |
| £162.01 – £892 (upper earnings limit) | **12% | – | |
| £162.01 – £892 (under 21s and apprentices under 25) | – | 0% | |
| Above £892 | **2% | – | |
| *No NICs are actually payable but notional Class 1 NIC is deemed to have been paid; this protects contributory benefit entitlement. **Over State Pension age, the employee contribution is generally nil. |
|||
| Employment Allowance | Up to £3,000 (per year) | ||
| Class 1A | On relevant benefits | 13.8% | |
| Class 2 | Self employed | £2.95 per week | |
| Small profits threshold | £6,205 per annum | ||
| Class 3 | Voluntary | £14.65 per week | |
| Class 4 | Self employed on annual profits | ||
| £8,424 – £46,350 | *9% | ||
| Excess over £46,350 | *2% | ||
| *Exemption applies if state pension age was reached by 6 April 2018. | |||
In a change to the date originally announced, Class 2 NICs are set to be abolished from April 2019.
As previously announced, the government will no longer proceed with an increase to the main rate of Class 4 NICs from 9% to 10% in April 2018, and to 11% in April 2019.