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National Insurance Contributions

Class 1 National Insurance Thresholds

£ per week

2015-16

2016-17

2017-18

Lower Earnings Limit (LEL) - Employees don’t pay NI but get the benefits of paying

£112

£112

£113

Primary Threshold (PT)- Employees start paying NI

£155

£155

£157

Secondary Threshold (ST) - Employers start paying NI

£156

£156

£157

Upper Accrual Point (UAP) - Employees with a contracted-out pension pay a lower rate of NI up to this point

£770

N/A

N/A

Upper Earnings Limit (UEL) - All employees pay a lower rate of NI above this point

£815

£827

£866

Upper Secondary Threshold (UST) - Employers of employees who are under 21 pay zero rate up to this point

£815

£827

£866

Apprentice Upper Secondary Threshold (AUST) - Employers of certain apprentices who are under 25 pay zero rate up to this point

N/A

£827

£866

Class 1 National Insurance Rates

Employer Rates

2014-15

2015-16

2016-17

Rate above the Secondary Threshold

13.8%

13.8%

13.8%

Rebate for any employees in contracted-out pension schemes

3.4%

3.4%

N/A

Rebate for any employees in money-purchase schemes

N/A

N/A

N/A

Class 1A rate on expenses and benefits

13.8%

13.8%

13.8%

Employee Rates

2014-15

2015-16

2016-17

Between Primary Threshold and Upper Earnings Limit

12.0%

12.0%

12.0%

Above Upper Earnings Limit

2.0%

2.0%

2.0%

Rebate for employees in contracted-out workplace pension schemes

1.4%

1.4%

N/A

Married women’s reduced rate between primary threshold and upper earnings limit

5.85%

5.85%

5.85%

Rate for employees deferring National Insurance

2.0%

2.0%

2.0%

Class 2 and Class 4 National Insurance (self-employed)

Class 2

2014-15

2015-16

2016-17

Small Profits Threshold amount per year

-

£5,965

£5,965

Small earnings exception’ amount per year Self-employed people start paying Class 2 NI

£5,885

abolished

N/A

Rate per week

£2.75

£2.80

£2.80

Class 4

2014-15

2015-16

2016-17

Lower Profits Limit - Self-employed people start paying Class 4 NI

£7,956

£8,060

£8,060

Upper Profits Limit - Self-employed people pay a lower rate

£41,865

£42,385

£43,000

Rate between Lower Profits Limit and Upper Profits Limit

9.0%

9.0%

9.0%

Rate above Upper Profits Limit

2.0%

2.0%

2.0%

For more information, visit the HMRC website:
HMRC National Insurance Contributions

Reproduced under the Open Government License - http://www.hmrc.gov.uk/copyright/