Class 1 (Employees)
| Employee | Employer |
|---|
| 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% |