Class 1 (Employees)
|Main NIC rate||12.0%||13.8%|
|No NIC on first||£166pw||£166pw|
|Main rate* charged up to||£962pw||no limit|
|2% rate on earnings above||£962pw||N/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)
Class 4 (Self-employed)
|On profits £8,632 – £50,000||9.0%|
|On profits over £50,000||2.0%|