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 2020/21
Class 2 Flat Rate (per week) £3.05 £3.05
Class 4 @ 9% on profits between £9,568 – £50,270 £9,500 – £50,000
Class 4 @ 2% on profits in excess of £50,270 £50,000
  • 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 £6,515 per year (£6,475 in 2020/21)
  • 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 2020/21
No NI on earnings up to (per week) £184 £183
At 12% on earnings between (per week) £184 – £967 £183-962
At 2% on earnings in excess of (per week) £967 £962
  • *Entitlement to state pension and other contribution based benefits is retained for earnings between £120 and £184 per week.
Employer NI is due at 13.8% on employee weekly earnings in excess of £170 £169

NOTE:

  • Employment Allowance available to cover first £4,000 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 >