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