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 2021/22 2022/23
Class 2 Flat Rate (per week) £3.05 £3.15
Class 4 @ 10.25% (9% 2021/22) on profits between £9,568 – £50,270 £9,880 – £50,270
Class 4 @ 3.25% (2% 2021/22) on profits in excess of £50,270 £50,270
  • 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 £6,725 per year (£6,515 in 2021/22)
  • 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 2021/22 2022/23
No NI on earnings up to (per week) £184 £190*
At 13.25% (12% 2021/22) on earnings between (per week) £184 – £967 £190-£967
At 3.25% (2% 2021/22) on earnings in excess of (per week) £967 £967
  • * from July 2022 this threshold will be £242
  • Entitlement to state pension and other contribution based benefits is retained for earnings between £123 and £190 per week.
Employer NI is due at 15.05% (13.8% 2021/22) on employee weekly earnings in excess of £170 £175

NOTE:

  • Employment Allowance available to cover first £5,000 (£4,000 2021/22) of Employer National Insurance contributions due (Since 6 April 2020, the Employment Allowance has not been available to employers whose only employee is a director).
  • Since 6 April 2020 the Employment Allowance has been considered under State Aid rules.
  • Employer National Insurance is not due for Employees aged 21 or under.
  • From 6 April 2016, there is no Employer NI due for employees who are apprentices and aged under 25 up to the upper secondary threshold of £967 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 >