Class 1 (Employees)

EmployeeEmployer
Main NIC rate12.0%13.8%
No NIC on first£166pw£166pw
Main rate* charged up to£962pwno limit
2% rate on earnings above£962pwN/A
Employment allowance per business**N/A£3,000

*Nil rate of employer NIC for employees under the age of 21 and apprentices under 25, up to £962pw.

**Some businesses do not qualify, including certain sole director companies.

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£3
Small profits threshold£6,365

Class 3 (Voluntary)

Flat rate per week£15

Class 4 (Self-employed)

On profits £8,632 – £50,0009.0%
On profits over £50,0002.0%