National insurance contributions (NICs)

The new rates of NICs.

2018/19 Employee
(Primary)
Employer
(Secondary)
Class 1
Payable on weekly earnings of    
Below £116 (lower earnings limit) Nil -
£116 to £162 (primary threshold) *0% -
Up to £162 (secondary threshold) - Nil
Above £162 - 13.8%
£162.01 - £892 (upper earnings limit) **12% -
£162.01 - £892 (under 21s and apprentices under 25) - 0%
Above £892 **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 £2.95 per week
Small profits threshold £6,205 per annum
Class 3 Voluntary £14.65 per week
Class 4 Self-employed on annual profits  
£8,424 - £46,350 *9%
Excess over £46,350 *2%
*Exemption applies if State Pension age is reached by 6 April 2018.

In a change to the date originally announced, Class 2 NICs are set to be abolished from April 2019.

As previously announced, the government will no longer proceed with an increase to the main rate of Class 4 NICs from 9% to 10% in April 2018, and to 11% in April 2019.


Newswire

Why not register to receive our Monthly Newswire? Once a month we'll send you an email packed full of essential business news and handy tax tips to help save you money.

Sign up today »


Quick Links

Home | Contact us | Accessibility | Disclaimer | Help | Site map |

© 2018 Blue Spire Limited. All rights reserved.

We use cookies on this website, you can find more information about cookies here.

Contact Chichester Office

Tel: +44 (0)1243 781234
Fax: +44 (0)1243 791770
Email: chichester@bluespiregroup.com


Contact Brighton Office

Tel: +44 (0)1273 739533
Fax: +44 (0)1273 732844
Email: brighton@bluespiregroup.com

Chichester Address
Cawley Priory, South Pallant, Chichester, West Sussex PO19 1SY

Brighton Address
5th Floor Intergen House, 65-67 Western Road, Hove, East Sussex BN3 2JQ

Blue Spire Limited is Registered to carry out audit work in the UK and Ireland and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales C004152645. Professional indemnity insurance is provided by Royal & Sun Alliance Insurance Plc 9th Floor, One Plantation Place, 30 Fenchurch Street, London, EC3M 3BD and its territorial coverage is worldwide (excluding United States/Canada).
Blue Spire Financial Planning Limited is authorised and regulated by the Financial Conduct Authority. FSA register https://www.fca.org.uk/register reference 566257. This guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at customers based in the UK