Budget Summary 2023/24

National Insurance Contributions

National Insurance Contributions 2023/24 (Table D)

Employee Employer
Main NIC rate 12% 13.8%
No NIC on first £242pw £175pw
Main rate charged up to* £967pw no limit
2% rate on earnings above £967pw N/A
Employment allowance per qualifying business** N/A £5,000

*Nil rate of employer NIC on earnings up to £967pw for employees aged under 21, apprentices aged under 25 and ex-armed forces personnel in their first twelve months of civilian employment.

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).

Class 2 (Self employed)

Flat rate per week if profits above £12,570 £3.45

If profits are less than £6,725, Class 2 must be paid voluntarily to maintain entitlement to full state benefits (including the state pension).

Class 3 (Voluntary)

Flat rate per week £17.45

Class 4 (Self employed)

On profits £12,570 – £50,270 9%
On profits over £50,270 2%