National Insurance is due on earnings for employees and self-employed workers. There are different Classes of National Insurance applicable to different income types.
Applies to anyone aged 16 or over and under state pension age:-
|Self Employed individual||2017/18||2016/17|
|Class 2 Flat Rate (per week)||£2.85||£2.80|
|Class 4 @ 9% on profits between||£8,164-£45,000||£8,060-£43,000|
|Class 4 @ 2% on profits in excess of||£45,000||£43,000|
- 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 £6,025 per year (£5965 in 2016/17)
- Class 4 National Insurance liability ceases from the start of the tax year after the one in which the person reaches State Pension age.
|No NI on earnings up to (per week)||£157*||£155*|
|At 12% on earnings between (per week)||£157-£866||£155-827|
|At 2% on earnings in excess of (per week)||£866||£827|
- *Entitlement to state pension and other contribution based benefits is retained for earnings between £113 and £157 per week. (£112 and £155/156 per week 2016/17)
|Employer NI is due at 13.8% on employee earnings in excess||£157||£156|
- Employment Allowance available to cover first £3000 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.
- 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.