National Insurance: Rates - RossMartin.co.uk

: Last Updated: 04 April 2022

This is a freeview 'At a glance' guide to the rates of National Insurance.

What are the current National Insurance rates? What rates will apply to next year? What is the Health and Social Care Levy? Who will the levy apply to?

Employer/employee rates

Employers & employees (not contracted out)

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

Rates 2022-23

Employee rate	Band	Earnings per week/month/year	Employer rate	Weekly earnings
0%	LEL	Up to: £123 per week £533 per month £6,396 per year	0%
0%	LEL- PT	6 April 2022 to 5 July 2022: £123 to £190 6 July 2022 to 5 April 2023: £123 to £242	N/A
13.25%	PT-UEL	6 April 2022 to 5 July 2022: £190 - £967 per week £823 - £4,189 per month £9,880 - £50,270 per year 6 July 2022 to 5 April 2023: £242 - £967 per week £1,048 - £4,189 per month £12,570 - £50,270 per year	N/A
N/A	ST	£175 to £967	15.05%	Above £175
3.25%	UEL	£967 per week £4,189 per month £50,270 per year	15.05%	Above £967

Other types of employee weekly 2022-23 thresholds:

Upper Secondary Threshold (employees under 21 and apprentices under 25): £967 per week/£4,189 per month/£50,270 per year
Veterans' Upper Secondary Threshold: £967 per week/£4,189 per month/£50,270 per year
Freeport Upper Secondary Threshold: £481 per week/£2,083 per month/£25,000 per year

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

	2022-23	2012-13 to 2021-22	2011-12	2010-11
Employers Class 1A on taxable benefits in kind	15.05%	13.8%	13.8%	12.8%
Employees’ contracted-out rebate*	N/A	1.4%	1.6%	1.6%
Married women’s reduced rate between primary threshold and upper earnings limit	7.1%	5.85%	5.85%	4.85%
Married women’s rate above upper earnings limit	3.25%	2%	2%	1%
Employers’ contracted-out rebate, salary-related schemes*	N/A	3.4%	3.7%	3.7%
Employers’ contracted-out rebate, money-purchase schemes	N/A	N/A	1.4%	1.4%

*Abolished from April 2016

Self-employed rates

Self-employed

Current rates

	2022-23		2021-22
Type	Profits	Rate	Profits	Rate
Class 2 Flat rate	£6,725+	£3.15 per week	£6,515+	£3.05 per week
Class 4	6 April 2022 to 5 July 2022 Up to £9,880 6 July 2022 to 5 April 2023 Up to £12,570	0%	Up to £9,568	0%
Class 4	6 April 2022 to 5 July 2022 £9,880 to £50,270 6 July 2022 to 5 April 2023 £12,570 to £50,270	10.25%	£9,568 to £50,270	9%
Class 4	Above £50,270	3.25%	Above £50,270	2%

Past rates

	2020-21
Type	Profits	Rate
Class 2 Flat rate	£6,475+	£3.05 per week
Class 4	Up to £9,500	0%
Class 4	£9,500 to 50,000	9%
Class 4	Above £50,000	2%

	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%

	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

Health & Social Care Levy (2022-23 onwards)

The government 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 initially be delivered in 2022-23 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.

2022-23

A 1.25% increase in NICs applies from 6 April 2022 on:

Employee Primary Class 1 NICs.
Employer Secondary Class 1 NICs, including Class 1A and 1B.
Class 4 NICs.

Class 2 and Class 3 NICs will be unaffected.

This NICs rise in 2022-23 effects:

Employees below the state pension age.
All employers, regardless of the age of employees.
The self-employed below the state pension age.

2023-24

From 6 April 2023, the 1.25% Levy will be distinct from NICs, which will return to their lower, 2021-22, rates.

From 2023-24, the new Levy will apply to the same amounts as the following classes of NICs:

Class 1 (above the Primary and Secondary Thresholds).
Class 1A and 1B.
Class 4.

Employed and self-employed individuals working above the state pension age will be liable to the Levy in 2023-24.

All existing NIC reliefs available to employers will apply to the Levy. These include:

Employees under 21.
Apprentices under 25.
Qualifying Freeport employees.
The Employment Allowance.
Armed forces veterans.

Impact

The government paper's tax impact statistics anticipate:

6.2 million people earning less than the Primary Threshold/Lower Profits Limit in 2021-22 will not pay the Levy.
2% of individuals affected will be additional rate taxpayers, but these 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 with employees will not be affected as the Levy will be covered by the Employment Allowance.
Another 40% of businesses will face an increase of £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 2022-23 changes and 2021-22 rates are set out below:

Employee rate 2022-23	Employee rate 2021-22	Band	2021-22 weekly earnings thresholds	2022-23 weekly earnings thresholds	Employer rate 2022-23	Employer rate 2021-22
0%	0%	LEL	Up to £120	Up to £123	0%	0%
0%	0%	LEL- PT	£120 to £184	£123 to £190	-	-
13.25%	12%	PT- UEL	£184 to £967	£190 to £967	-	-
-	-	ST	£170 to £967	£175 to £967	15.05%	13.8%
3.25%	2%	UEL	Over £967	Over £967	15.05%	13.8%

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

Changes to self-employed rates

	2022-23	2021-22	2022-23 Profit bands	2021-22 Profit bands
Class 2 flat rate	£3.15	£3.05	£6,725+	£6,515+
Class 4	0%	0%	Up to £9,880	Up to £9,568
Class 4	10.25%	9%	£9,880 to £50,270	£9,568 to £50,270
Class 4	3.25%	2%	Above £50,270	Above £50,000

How will this affect me?

Examples

The following table shows 2021-22 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.
	2021-22	2022-23	2021-22	2022-23	2021-22	2022-23
Liability above Primary Threshold at 12% / 13.25%	£360	£356	£4,884	£5,352	£4,884	£5,352
Liability above Upper Earnings Limit at 2% / 3.25%	-	-	-	-	£495	£804
Additional employee NICs	£ -		£468		£777
Employer contributions above Secondary Threshold at 13.8% / 15.05%	£515	£522	£5,717	£6,196	£9,130	£9,918
Additional employer NICs	£7		£479		£788

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.
	2021-22	2022-23	2021-22	2022-23	2021-22	2022-23
Liability above lower limit at 9% / 10.25%	£270	£275	£3,663	£4,140	£3,663	£4,140
Liability above Upper Profits Limit at 2% / 3.25%	-	-	-	-	£495	£804
Additional self-employed NICs	£5		£477		£786

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