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National Insurance Contributions (NICs)

2017/18 Employee (primary) Employer (secondary)
Class 1
Payable on weekly earnings of
 
 
Below £113 (lower earnings limit)
Nil
-
£113 to £157 (primary threshold)
*0%
-
Up to £157 (secondary threshold)
-
Nil
Above £157
-
13.8%
£157.01- £866 (upper earnings limit)
**12%
-
£157.01- £866 (under 21s and apprentices under 25)
-
0%
Above £866
**2%
-
*No NICs are actually payable but a notional Class 1 NIC is deemed to have been paid; this protects contributory benefit entitlement.
**Over state pension age, the employee contribution is generally nil.

Employment allowance

 
up to £3,000 (per year)
Class 1A On relevant benefits  
13.8%
Class 2 Self-employed
£2.85 per week
Small profits threshold
£6,025 per annum
Class 3 Voluntary
£14.25 per week
Class 4 Self-employed on annual profits
 
£8,164 - £45,000
*9%
Excess over £45,000
*2%
*Exemption applies if state pension age was reached by 6 April 2017.

Future changes

Class 2 NICs will be abolished from April 2018.