Here are the UK National Insurance Rates 2018/2019.
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 2018/2019
Anyone who is employed pays Class 1 National Insurance. The amount they pay is based on their earnings. Here are the 2018/2019 Class 1 National Insurance Rates:
|Gross Salary||Class 1 National Insurance rate|
|£162 to £892 a week (£702 to £3,863 a month)||12%|
|Over £892 a week (£3,863 a month)||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 2018/2019 is £116 per week / £6,032 per year.
Employer National Insurance Contribution Rates for 2018/2019
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 2018/2019:
|Gross Salary||Class 1 National Insurance rate||Class 1A & 1B National Insurance rate (on benefits)|
|Up to £162 a week (£8,424 p.a.)||0%||13.8%|
|Above £162 a week (£8,424 p.a.)||13.8%||13.8%|
Self Employed National Insurance Contribution Rates for 2018/2019
|National Insurance Class||National Insurance Rates 2018/2019|
|Class 2||£2.95 a week on taxable profits above £6,025|
9% on profits between £8,425 and £45,000
2% on profits over £46,350
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