National Insurance Rates 2018/2019

224
National Insurance Rates 2018/2019

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 1 Employees
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
Class 4 9% on profits between £8,425 and £45,000
2% on profits over £46,350

Next: Find out about Income Tax Bands >>

Accountant In Your Inbox

I'll help you to make more profits, pay less tax and stay on the right side of the rules. Enter your email address to connect with me!

No spam ever. Unsubscribe at any time. Powered by ConvertKit