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What are the National Insurance rates?

The following tax facts should be viewed as an indication of the rates and allowances available and relate to the current tax year (2020/2021) unless stated otherwise. Tax law is notoriously complex and we cannot replicate every rule, nuance or exemption here. Therefore you should not make, or refrain from making, any decisions based on this information alone. If you are in any doubt as to the suitable course of action we recommend you seek tax advice. Remember tax rules can change and depend on your personal circumstances.

Class 1 employed (2019/20)

Earnings per week Employee rate
£0 to £166 Nil
£166 to £962 12%
£962 and over 2%
Earnings per week Employer rate
£0 to £166 Nil
£166 and over 13.8%

National Insurance applies to most earned income or benefits in kind. National Insurance rates may be different for certain employees, e.g. if employee is over the State Pension age. No National Insurance paid by employers up to £962 for employees under 21 or apprentices under 25.

Self-employed and voluntary

Type of National Insurance contribution Tax rate 2019/20
Class 2 self-employed £3.00 per week
Class 2 small profits threshold £6,365 per annum
Class 3 voluntary £15.00 per week
Class 4 lower profits limit £8,632 per annum
Class 4 upper profits limit £50,000 per year
Class 4 rate between lower profits limit and upper profits limit 9%
Class 4 rate above upper profits limit 2%

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