National Insurance

 

Class 1 National Insurance Contribution Rates 2017-18

 

Employee Earnings £ per week NIC rate Percent Employer Earnings £ per week NIC rate Percent
Below £112 0 Below £156 0
£112 to £155 0 Above £156 13.8
£155.01 – £827 12
above £827 2

Self Employed National Insurance Contribution Rates 2017-18

 

Annual Profits £ per year Class 2 £ Per Week Class 4 Percent
Below £6,025 (SEE) 0 0
£5,965 to £8,164 (LPL) 2.85 0
£8,061 to £45,000 (UPL) 2.85 9
Above £45,000 2.85 2

The limits are defined as SEE – small earnings exception; LPL – lower profits limit and UPL – upper profits limit.

Class 2 NICs are paid at a weekly flat rate of £2.80 by all self employed persons unless they have applied for a small earnings exception.

The self-employed may apply for exception from paying Class 2 contributions if their earnings are less than, or expected to be less than, the level of the small earnings exception.

Other NIC Rates

 

2017-18 2016-17
 Married Woman’s reduced rate for Class1 Contribution rates  £5.85  £5.85
Class 3 Rate £14.10 per week £14.10 per week

 

Class 3 NIC

  • A person needs 35 years (30 years if state pension is before 6 April 2016) of NICs to get full state pension)
  • Class 3 Voluntary contributions can be paid to fill or avoid gaps in a NI record

 

 

 

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