National insurance

Class 1

Employees start paying Class 1 NIC from age 16 (if sufficient earnings).

Employers pay Class 1 NIC in accordance with the table below.

Employer NIC for employees under the age of 21 and apprentices under the age of 25 is reduced from the normal rate to 0% up to the Upper Secondary Threshold of £967 per week. Also applies to veterans in the first 12 months of employment.

Employees Class 1 NIC stop when they reach their 'State Pension age'. The employer's contribution continues.

Employees

2023/24:

Earnings per week	%
Up to £242	Nil
£242.01 - £967	12 up to 5 Jan 2024 10 from 6 Jan 2024
Over £967	2

Entitlement to state pension and other 'contribution-based benefits' is retained for earnings between £123 and £242 per week.

2022/23:

Earnings per week	% (from 6/11/22)	% (to 5/11/22)
Up to £242 ¹	Nil	Nil
£242.01 - £967	12	13.25
Over £967	2	3.25

£190 until 5 July 2022

Entitlement to state pension and other 'contribution-based benefits' is retained for earnings between £123 and £190 per week.

Employers

2023/24:

Earnings per week	%
Up to £175	Nil
Over £175	13.80

2022/23:

Earnings per week	% (from 6/11/22)	% (to 5/11/22)
Up to £175	Nil	Nil
Over £175	13.80	15.05

Other National Insurance payable by employers

Class 1A

13.8% on broadly all taxable benefits provided to employees and on certain taxable termination and sporting testimonial payments in excess of £30,000.

Class 1B

13.8% on taxable PAYE Settlement Agreements.

Class 2 and 4 (self-employed)

A self-employed person starts paying Class 2 and Class 4 NIC from 16 or over (if sufficient profits).

Class 2 NIC stop when a person reaches State Pension age.

Class 4 NIC stop from the start of the tax year after the one in which the person reaches State Pension age.

2023/24:

Class 2	(£)
Flat rate per week	3.45
Small Profits Threshold (per year)	6,725
Lower Profits Limit	12,570

For 2023/24 the point at which the self-employed person starts to pay Class 2 NICs is £12,570. This means those with profits between the Small Profits Threshold and the Lower Profits Limit will not pay Class 2 NICs, but will still be able to access entitlement to contributory benefits. A self-employed person with profits below the Small Profits Threshold might decide to carry on paying Class 2 voluntarily to accrue entitlement to the State Pension and other benefits.

2022/23:

Class 2	(£)
Flat rate per week	3.15
Small Profits Threshold (per year)	6,725
Lower Profits Limit	11,908

Class 4

2023/24:

Annual profits	%
Up to £12,570	Nil
£12,570.01 - £50,270	9
Over £50,270	2

2022/23:

Annual profits	%
Up to £11,908	Nil
£11,908.01 - £50,270	9.73
Over £50,270	2.73

Class 3

A person needs 35 years (30 years if State Pension age is before 6 April 2016) of NIC to get a full State Pension.

Class 3 voluntary contributions can be paid to fill or avoid gaps in a NI record.

Flat rate per week: £17.45 (2022/23: £15.85)

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Tax Rates - National Insurance

National insurance

Class 1

Employees

2023/24:

2022/23:

Employers

2023/24:

2022/23:

Other National Insurance payable by employers

Class 1A

Class 1B

Class 2 and 4 (self-employed)

2023/24:

2022/23:

Class 4

2023/24:

2022/23:

Class 3

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Tax Rates - National Insurance

National insurance

Class 1

Employees

2023/24:

2022/23:

Employers

2023/24:

2022/23:

Other National Insurance payable by employers

Class 1A

Class 1B

Class 2 and 4 (self-employed)

2023/24:

2022/23:

Class 4

2023/24:

2022/23:

Class 3

Here to help

Contact details

What services are you interested in?

Message

Which location would you like to contact?

Communication

Latest news

BCC calls for industrial strategy that benefits all parts of UK

Boosting the State Pension

Can apprenticeship overhaul ease skills shortages?

More than 400,000 student loan customers use digital refund service

Business frustrated at halt in rollout of digital trade platform

Interest rates cut to 4.75%

Almost half of UK adults have not written a will

Government bank referral scheme 'secured loans for just one in 20 companies'

Employer NICs rise may have unforeseen consequences

Chancellor's Budget tax increases 'will boost growth sustainably', says IMF

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