Here are the UK National Insurance Rates 2017/2018.
The type of national insurance payable depends on employment status. Here is a summary of the different types of National Insurance and who needs to pay them:
|National Insurance Class||Who Pays|
|Class 1A and 1B||Employers|
|Class 2||Self employed individuals|
|Class 3||Voluntary Contributions|
|Class 4||Self employed individuals|
Class 1 National Insurance Contribution Rates for 2017/2018
Anyone who is employed pays Class 1 National Insurance. The amount they pay is based on their earnings. Here are the 2017/2018 Class 1 National Insurance Rates:
|Gross Salary||Class 1 National Insurance rate|
|£157 a week (£8,164 p.a) to £888 a week (£45,000 p.a)||12%|
|Over £888 a week (£45,000 p.a)||2%|
When it comes to Class 1 National Insurance there is an additional rate called the Lower Earnings Limit (LEL). Although earnings below this amount incur no NICs, it entitles the employee to all the benefits of those that do pay NICs. This includes benefits like state pension and maternity allowance.
The LEL for 2017/2018 is £113 per week / £5,876 per year.
Employer National Insurance Contribution Rates for 2017/2018
Employers pay national insurance for anyone they employ. The amount they pay is related to the employees gross pay. Here are the Employers National Insurance Contribution Rates 2017/2018:
|Gross Salary||Class 1 National Insurance rate||Class 1A & 1B National Insurance rate (on benefits)|
|Up to £157 a week (£8,164 p.a)||0%||13.8%|
|Above £157 a week (£8,164 p.a)||13.8%||13.8%|
Self Employed National Insurance Contribution Rates for 2017/2018
|National Insurance Class||National Insurance Rates 2017/2018|
£2.85 a week on taxable profits above £6,025
|Class 4||9% on profits between £8,164 and £45,000
2% on profits over £45,000
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