National Insurance Contributions (NICs)

The new rates of 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.


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