Rates & Allowances

Class 1 (Employees) Not Contracted out of State Second Pension S2P
2015 / 16
2016 / 17
Employee: Employee:
No NICs where earnings
are up to £155 a week
12% NICs on £155.01-£815 a week
2% NICs over £815 a week
No NICs where earnings
are up to £155 a week
12% NICs on £155.01-£827 a week
2% NICs over £827 a week
   
Employer: Employer:
No NICs on the first £155 a week
13.8% NICs over £156 a week
No NICs on the first £155 a week
13.8% NICs over £156 a week

The rate is 0% in relation to employees under 21 on earnings up to £827/week
Married women's reduced rate - 5.85% on earnings between £155 and £827 per week plus 2% on earnings above £827 per week.

Earnings limit or threshold
2015 / 16
2016 / 17
.
Weekly
Weekly
.
£
£
Lower limit (LEL)
112
112
Primary threshold *
155
155
Secondary threshold
156
156
Upper accrual point
770
770
Upper limit (UEL)
815
827

*For earnings between secondary threshold and the primary threshold National Insurance becomes payable by the employer but not the employee.

Contracted-out S2P rebate
2015 / 16
2016 / 17
Reduction on band earnings
£112.01-£770 pw
£112.01-£770 pw
Employer rate reduction:
.
.
Salary-related scheme
3.4%
3.4%
Employee rate reduction:
.
.
Salary-related scheme
1.4%
1.4%
.
.
.

Class 1A (Employers)

.
.

Most taxable employee benefits

13.8%
13.8%
.
.
.

Class 2 (Self-Employed)

.
.

Flat rate

£2.80 pw
£2.80 pw

Small earnings exception

£5,965 pa
£5,965 pa
- for share fishermen
£3.45 pw
£3.45 pw
- for volunteer development workers
£5.60 pw
£5.60 pw
.
.
.

Class 3 (Voluntary)

. .
Flat rate
£14.10 pw
£14.10 pw
.
.
.
Class 4 (Self-Employed) . .
On profits
£8,060-£42,385 pa = 9%
Over £42,385 pa = 2%
£8,060-£43,000 pa = 9%
Over £43,000 pa = 2%