NATIONAL INSURANCE RATES

National Insurance Rates

There are different classes of National Insurance (NI). The type people pay depends on their employment status and how much they earn.

You Pay National Insurance Contributions to qualify for Certain Benefits including the State Pension.

You pay National Insurance if You’re:

  • 16 or over
  • an employee earning above £155 a week
  • self-employed and making a profit of £5,965 or more a year

You need a National Insurance number before you can start paying National Insurance contributions.

If you earn between £112 and £155 a week, your contributions are treated as having been paid to protect your National Insurance record.

National Insurance classes

There are different types of National Insurance (known as ‘classes’). The type you pay depends on your employment status and how much you earn, and whether you have any gaps in your National Insurance record.

When you stop paying

If you’re employed, you stop paying Class 1 National Insurance when you reach the State Pension age.

If you’re self-employed you stop paying:

Class 2 National Insurance when you reach State Pension age (or up to 4 months after this to pay off any contributions you owe).

Class 4 National Insurance from 6 April (start of the tax year) after you reach State Pension age.

If you’re employed

You pay Class 1 National Insurance contributions. The rates for most people for the 2016 to 2017 tax year are:

Your pay Class 1 National Insurance rate
£155 to £827 a week (£672 to £3,583 a month) 12%
Over £827 a week (£3,583 a month) 2%

If you’re self-employed

You usually pay 2 types of National Insurance if you’re self-employed:

Class 2 if your profits are £5,965 or more a year

Class 4 if your profits are £8,060 or more a year

You work out your profits by deducting your expenses from your self-employed income.

How much you pay?

Class Rate for tax year 2016 to 2017
Class 2 £2.80 a week
Class 4 9% on profits between £8,060 and £43,000
2% on profits over £43,000

LEGAL NOTICE AND WARNING:
The information displayed in this section should not be used as a definitive guide, since individual circumstances may vary. Specific advice should be obtained where necessary. We accept no responsibility of use of above information on your own.