National Insurance
Contribution Rates
The Inland Revenue
Office deals with National Insurance (NI) contributions and credits. For
more information on NI contributions.
- CAO - 1 NI for
employees.
- CWL - 2 NI contributions
for self-employed people. Class 2 and Class 4.
- CAO - 8 National
Insurance voluntary contributions.
.: Employed rate
- Class 1.
| Employee's
earnings threshold |
£89.00
a week |
This is the level
of earnings where you have to start paying Class 1 National Insurance
(NI) contributions if you work for an employer. You have to pay contributions
on the amount of your earnings above this level.
| Lower
earnings limit (LEL) |
£75.00
a week
|
This is the level
at which your earnings become relevant for NI purposes. It is a lower
amount than the employee's earnings threshold where you actually have
to start paying NI contributions (see above). If your average earnings
are at least equal to the LEL but below the employee's earnings threshold,
you will be treated as if you had paid Class 1 NI contributions.
| Upper
earnings limit (UEL) |
£585.00
a week |
This is the level
of earnings where the amount of Class 1 NI contributions you pay on your
earnings will not go any higher. Non contracted-out rate For employees
paying the standard rate:-
| Total
weekly earnings |
On earnings
over £ 75.00 |
| up
to £75.00 |
nil |
| £75.01
- £89.00 |
0%
but treated as paid for NI purpose |
| £89.01
- £585.00 |
10% |
| over
£585.00 |
10%
on earning from £87.01 to £575.00 |
| |
then
nil on earnings over £585.00 |
Contracted-out rate
For employees paying the standard rate
| Total
weekly earnings |
On
earnings over £75.00 |
| up
to £75.00 |
nil |
| £75.01
- £89.00 |
0%
but treated as paid for NI purposes |
| £89.01-
£585.00 |
8.4% |
| over
£585.00 |
8.4%
on earnings from £89.01 to £585.00 |
| |
then
nil on earnings over £585.00 |
.: For employees
paying the reduced rate.
| Total
weekly earnings |
On
earnings over £75.00 |
| up
to £75.00 |
nil |
| £75.01
- £89.00 |
0%
but treated as paid for NI purposes |
| £89.01
- £585.00 |
3.85% |
| over
£585.00 |
3.85%
on earnings from £89.01 to £585.00 |
| |
then
nil on earnings over £585.00 |
.: Self-employed
rate - Class 2.
| Flat
rate |
£
2.00 |
| Class
2 share Fishermen |
£
2.65 |
| Small
earnings exemption |
£4025.00
a year |
.: Voluntary contributions
rate - Class 3.
.: Class 4 .
| Lower
profits limit |
£4,615
a year |
| Upper
profits limit |
£30,420
a year |
| Contributions
on profits between lower and upper levels |
7%
|
|
