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
  1. £190 until 5 July 2022

Entitlement to state pension and other 'contribution-based benefits' is retained for earnings between £123 and £190 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

Address

Sam Rogoff & Co Ltd, 3rd Floor, Great Titchfield House, 14-18 Great Titchfield Street, London W1W 8BD

Contact us today!

0207 637 5310

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Sam Rogoff & Co Ltd, is a UK Limited Company registered in England and Wales under number 07092178. Sam Rogoff & Co Ltd is authorised and regulated by the Institute of Chartered Accountants in England and Wales (“ICAEW”) under registration number C002545445 and is subject to the ICAEW Code of Ethics. Regulated for a range of investment business activities, and licensed to carry out the reserved legal activity of non-contentious probate in England and Wales by the ICAEW. Details of our status can be viewed at www.auditregister.org.uk under registration number C002545445. We are registered for VAT under registration number GB 228 4926 42