National Insurance

National Insurance is due on earnings for employees and self-employed workers. There are different Classes of National Insurance applicable to different income types.

Self Employed individual

Applies to anyone aged 16 or over and under state pension age:-

Self Employed individual 2018/19 2017/18
Class 2 Flat Rate (per week) £2.95 £2.85
Class 4 @ 9% on profits between £8,424 – £46,350 £8,164 – £45,000
Class 4 @ 2% on profits in excess of £46,350 £45,000
  • Class 2 and Class 4 National Insurance is collected as part of the self-assessment tax liability.
  • Class 2 National Insurance stops when a person reaches State Pension age.
  • Class 2 National Insurance is due when self-employed profits exceed £6,205 per year (£6,025 in 2017/18)
  • Class 4 National Insurance liability ceases from the start of the tax year after the one in which the person reaches State Pension age.

Employed individual

Employed individual 2018/19 2017/18
No NI on earnings up to (per week) £162* £157*
At 12% on earnings between (per week) £162 – £892 £157 – 866
At 2% on earnings in excess of (per week) £892 £866
  • *Entitlement to state pension and other contribution based benefits is retained for earnings between £116 and £162 per week. (£113 and £157 per week 2017/18)
Employer NI is due at 13.8% on employee earnings in excess of £162 £157

NOTE:

  • Employment Allowance available to cover first £3,000 of Employer National Insurance contributions due (From 6 April 2016, no Employment Allowance is available to an employer whose only employee is a director.)
  • Employer National Insurance is not due for Employees aged 21 or under.
  • From 6 April 2016, no Employer NI due for employees who are apprentices and aged under 25 up to the upper secondary threshold of £892 per week.
  • Class 3 National Insurance can be paid on a voluntary basis to fill gaps in a person’s National Insurance record in order to qualify for full State Pension
  • If you wish to look into the Employment Allowance in closer detail then please click the link > Employment Allowance


You can check your National Insurance record by following the guidance here >