National Insurance: Rates

: Last Updated: 02 November 2021

National Insurance rates

Employer/employee rates

Employers & employees (not contracted out)

LEL= Lower Earnings Limit
PT = Primary Threshold
ST= Secondary Threshold
UEL = Upper Earnings Limit

Rates 2021-22

Employee rate	Band	Weekly earnings	Employer rate	Weekly earnings
0%	LEL	Up to £120	0%
0%	LEL- PT	£120 to £184	N/A
12%	PT-UEL	£184 - £967	N/A
N/A	ST	£170 to £967	13.8%	Above £170
2%	UEL	Over £967	13.8%	Above £967

Rates 2020-21

From April 2020 the PT and ST diverge and are set at different rates

Employee rate	Band	Weekly earnings	Employer rate	Weekly earnings
0%	LEL	Up to £120	0%
0%	LEL- PT	£120 to £183	N/A
12%	PT-UEL	£183 - £962	N/A
N/A	ST	£169 to £962	13.8%	Above £169
2%	UEL	Over £962	13.8%	Above £962

Rates 2019-20

Employee rate	Band	Weekly earnings	Employer rate	Weekly earnings
0%	LEL	Up to £118
0%	PT	£166	0%	£1 to £166
12%	PT/ST	£166.01 to £962	13.8%	Above £166
2%	UEL	Over £962	13.8%	Above £962

Rates 2018-19

Employee rate	Band	Weekly earnings	Employer rate	Weekly earnings
0%	LEL	Up to £116
0%	LEL - PT	£116 to £162	0%	£1 to £162
12%	ST	£162.01 to £892	13.8%	Above £162
2%	UEL	Over £892	13.8%	Above £892

Rates 2017-18

Employee rate	Band	Weekly earnings	Employer rate	Weekly earnings
0%	LEL	Up to £113
0%		£113 to £157	0%	£1 to £157
12%	ST	£157.01 to £866	13.8%	Above £157
2%	UEL	Over £866	13.8%	Above £866

Rates 2016-17

Employee rate	Band	Weekly earnings	Employer rate	Weekly earnings
0%	LEL	Up to £112
0%		£112 to £155	0%	£1 to £156
12%	ST	£155.01 to £827	13.8%	Above £156
2%	UEL	Over £827	13.8%	Above £827

From 2015/16 on Employers' NIC is abolished for apprentices under 25 earning under the upper secondary threshold

Rates 2015-16

Employee rate	Band	Weekly earnings	Employer rate	Weekly earnings
0%	LEL	Up to £112
0%		£112 to £155	0%	£1 to £156
12%		£156 to £815	13.8%	Above £156
2%	UEL	Over £815	13.8%	Above £815

Rates: 2014-15

Employee rate	Band	Weekly earnings	Employer rate	Weekly earnings
0%	LEL	Up to £111
0%		£111 to £153	0%	£1 to £153
12%		£153 to £805	13.8%	Above £153
2%	UEL	Over £805

Rates: 2013-14

Employee rate	Band	Weekly earnings	Employer rate	Weekly earnings
0%	LEL	Up to £109
0%		£109 to £149	0%	£1 to £148
12%		£149 to £797	13.8%	Above £148
2%	UEL	Over £797

National Insurance rates 2011-12 to 2012-13

Employee rate	Band	2012-13 Weekly earnings	2011-12 Weekly earnings	Employer rate	2012-13 Weekly earnings	2011/-2 Weekly earnings
0%	LEL	Up to £107	Up to £102
0%		£107 to £146	£102 to £139	0%	£1 to £144	£1 to £135.99
12%		£146 to £817	£139 to £817	13.8%	Above £144	Above £136
2%	UEL	Over £817	Over £817

National Insurance rates: other & contracted out rates

	2012/13 onwards	2011/12	2010/11
Employers Class 1A on taxable benefits in kind	13.8%	13.8%	12.8%
Employees’ contracted-out rebate *	1.4%	1.6%	1.6%
Married women’s reduced rate between primary threshold and upper earnings limit	5.85%	5.85%	4.85%
Married women’s rate above upper earnings limit	2%	2%	1%
Employers’ contracted-out rebate, salary-related schemes*	3.4%	3.7%	3.7%
Employers’ contracted-out rebate, money-purchase schemes	N/a	1.4%	1.4%

*Abolished from April 2016

Self-employed rates

Self-employed

Current rates

	2021/22		2020/21
Type	Profits	Rate	Profits	Rate
Class 2 Flat rate	£6,515+	£3.05 per week	£6,475+	£3.05 per week
Class 4	Up to £9,568	0%	Up to £9,500	0%
Class 4	£9,568 to £50,270	9%	£9,500 to 50,000	9%
Class 4	Above £50,270	2%	Above £50,000	2%

National Insurance rates (self-employed) - continued

Past rates

	2019/20		2018/19		2017/18		2016/17		2015/16
Type	Profits	Rate	Profits	Rate	Profits	Rate	Profits	Rate	Profits	Rate
Class 2 Flat rate	£6,365 +	£3.00 per week	£6,205 +	£2.95 per week	£6,025 +	£2.85 per week	5,965 +	£2.80 per week	5,965 +	£2.80 per week
Class 4	Up to £8,632	0%	Up to £8,424	0%	Up to £8,164	0%	Up to £8,060	0%	Up to £8,060	0%
Class 4	8,632 to 50,000	9%	8,424 to 46,350	9%	8,164 to 45,000	9%	8,060 to 43,000	9%	8060 to 42,385	9%
Class 4	Above 50,000	2%	Above 46,350	2%	Above 45,000	2%	Above 43,000	2%	Above 42,385	2%

National Insurance rates (self-employed) - continued

	2014/15		2013/14		2012/13		2011/12
Type	Profits £	Rates	Profits £	Rate*	Profits £	Rate	Profits £	Rate
Class 2 Flat rate	5,885 +	£2.75 per week	Over 5,725	£2.70 per week	Over 5,595	£2.65 per week	Over 5,315	£2.50 per week
Class 4	Up to 7,956	0%	Up to 7,755	0%	Up to 7,605	0%	Up to 7,225	0%
Class 4	7,956 to 41,865	9%	7,755 to 41,450	9%	7,605 to 42,475	9%	7,225 to 42,475	9%
Class 4	Over 41,865	2%	Over 41,450	2%	Over 42,475	2%	Over 42,475	2%

* Share fishermen and volunteer workers are subject to a higher rate

Proposed changes 2022/2023

The government has announced in its paper, Build Back Better: Our Plan for Health and Social Care, its plan for funding the NHS and social care sector. This will include a new Health & Social Care Levy which will be delivered by a raise in Class 1 and Class 4 National Insurance Contributions (NICs) of 1.25%. The Health and Social Care Levy Act 2021 received Royal Assent on 20 October 2021.

The 1.25% Levy in National Insurance Contributions applies from 6 April 2022 on:

Employee Primary Class 1 NICs.
Employer Secondary Class 1 NICs.
Class 4 NICs.

Class 2 and Class 3 NICs will be unaffected.

This tax rise only affects working-age employees, employers and the self-employed.
From 6 April 2023, the Levy will be distinct from NICs, which return to their lower rates. The new Levy will, from that point on, also apply to those individuals working above the State Pension age.
All existing NIC reliefs available to employers will apply to the Levy also.

The government paper's tax impact statistics anticipate:

6.2 million people earning less than the Primary threshold/Lower Profits Limit (£9,568) in 2021/22 will not pay the Levy.
Only 2% of individuals affected will be additional rate taxpayers, but will account for almost 20% of the revenues raised.
In 2022/23, a typical taxpayer will pay the following additional amounts, depending on the tax band:
- Basic rate taxpayer (earning £24,100) - £180 extra.
- Higher rate taxpayer (earning £67,100) - £715 extra.
About 40% of businesses will not be affected as the Levy will be covered by the Employment Allowance.
Another 40% of businesses will face an increase of just £450 per annum.
70% of the revenues raised from businesses will come from only 1% of businesses - those largest with over 250 employees.

NIC rates

The proposed changes and current rates are set out below:

Proposed Employee rate 2022-23	Current Employee rate 2021-22	Band	Current* weekly earnings thresholds	Proposed Employer rate 2022-23	Current Employer rate 2021-22	Current* weekly earnings thresholds for secondary threshold (ST)
0%	0%	LEL	Up to £120	0%	0%
0%	0%	LEL- PT	£120 to £184	-	-
13.25%	12%	PT- UEL	£184 - £967	-	-
-	-	ST	£170 to £967	15.05%	13.8%	Above £170
3.25%	2%	UEL	Over £967	15.05%	13.8%	Above £967

Notes

* The 1.25% tax rise will apply to earnings above the respective thresholds in future years, the government has yet to provide details of the earnings thresholds for 2022-23.

LEL= Lower Earnings Limit
PT = Primary Threshold
ST= Secondary Threshold
UEL = Upper Earnings Limit

Proposed changes to self-employed rates

	Proposed 2022-23	Current 2021-22	From 2022-23*	2021-22
Type of NICs:			Profit bands	Profits bands
Class 2 Flat rate	TBA	£3.05	TBA	£6,515+
Class 4	0%	0%	TBA	Up to £9,568
Class 4	10.25%	9%	TBA	£9,500 to 50,000
Class 4	3.25%	2%	Above TBA	Above £50,000

Notes:

* The 1.25% tax rise will apply to earnings/profits above the respective thresholds in future years, the government has not provided details of the earnings thresholds for 2022-23.

How will this affect me: examples?

The following table shows current NIC liabilities for both employee and employer versus the increased liability post 6 April 2022, for a selection of employee earnings levels.

	Personal Allowance: £12,570 p.a.	Basic Rate: £50,270 p.a.	Higher Rate: £75,000 p.a.
Liability above Primary Threshold (£9,564) @ 12% / 13.25%	£361 / £398	£4,884 / £5,393	£4,884 / £5,393
Liability above Upper Earnings Limit (£50,270) @ 2% / 3.25%			£495 / £804
Total Additional Employee Contributions	£37	£509	£818
Employer contributions above Secondary Threshold (£8,840) @ 13.8% / 15.05%	£515 / £561	£5,717 / £6,235	£9,130 / £9,957
Total Additional Employer Contributions	£46	£518	£827

The following table shows the same comparison but for self-employed individuals.

	Personal Allowance: £12,570 p.a.	Basic Rate: £50,270 p.a.	Higher Rate: £75,000 p.a.
Liability above Lower Profits Limits (£9,568) @ 9% / 10.25%	£270 / £308	£3,663 / £4,172	£3,663 / £4,172
Liability above Upper Profits Limit (£50,270) @ 2% / 3.25%			£495 / £804
Total Additional Self-Employed Contributions	£38	£509	£818