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% |