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
2024/25:
| Earnings per week | % |
|---|
| Up to £242 | Nil |
| £242.01 – £967 | 8 |
| Over £967 | 2 |
Entitlement to state pension and other ‘contribution-based benefits’ is retained for earnings between £123 and £242 per week.
2023/24:
| Earnings per week | From 6/1/24 (%) | To 5/1/24 (%) |
|---|
| Up to £242 | Nil | Nil |
| £242.01 – £967 | 10 | 12 |
| Over £967 | 2 | 2 |
Entitlement to state pension and other ‘contribution-based benefits’ is retained for earnings between £123 and £242 per week.
Employers
2024/25:
| Earnings per week | % |
|---|
| Up to £175 | Nil |
| Over £175 | 13.80 |
2023/24:
| Earnings per week | % |
|---|
| Up to £175 | Nil |
| Over £175 | 13.80 |
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.
From 6 April 2024, there is no longer a requirement to pay Class 2. Voluntary contributions can still be made.
Class 4 NIC stop from the start of the tax year after the one in which the person reaches State Pension age.
2024/25:
| Class 2 | (£) |
|---|
| Flat rate per week | 3.45 |
| Small Profits Threshold (per year) | 6,725 |
| Lower Profits Limit | n/a |
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.
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.
Class 4
2024/25:
| Annual profits | % |
|---|
| Up to £12,570 | Nil |
| £12,570.01 – £50,270 | 6 |
| Over £50,270 | 2 |
2023/24:
| Annual profits | % |
|---|
| Up to £11,908 | Nil |
| £11,908.01 – £50,270 | 9 |
| Over £50,270 | 2 |
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
