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 | 2022/23 | 2023/24 |
|---|---|---|
| Class 2 Flat Rate (per week) | £3.15 | £3.45 |
| Class 4 @ 9% (9.73% 2022/23) on profits between | £11,909 – £50,270 | £12,570 – £50,270 |
| Class 4 @ 2% (2% 2022/23) 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 £12,570 per year (£11,908 2022/23)
- 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 | 2022/23 | 2023/24 |
|---|---|---|
| No NI on earnings up to (per week) | £242* | £242 |
| At 12% (12% 2022/23) on earnings between (per week) | £242- £967 | £242-£967 |
| At 2% (2% 2022/23) on earnings in excess of (per week) | £967 | £967 |
- * from July 2022
- Entitlement to state pension and other contribution based benefits is retained for earnings between £123 and £242 per week.
| Employer NI is due at 13.8% (13.8% 2022/23) on employee weekly earnings in excess of | £175 | £175 |
|---|
NOTE:
- Employment Allowance available to cover first £5,000 (£5,000 2022/23) 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 >