Here are the UK National Insurance Rates 2019/2020.
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:
|Class 1||Employees earning more than £166 a week and under State Pension age (automatically deducted through payroll)|
|Class 1a||Employers pay these on employee’s expenses or benefits|
|Class 2||Self-employed people earning business profits of more than £6,365 a tax year (but you can choose to pay voluntary contributions)|
|Class 3||Voluntary contributions to fill or avoid gaps in your National Insurance record|
|Class 4||Self-employed people earning business profits over £8,632 a year|
Class 1 National Insurance Contribution Rates for 2019/2020
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:
|Employees Class 1 National Insurance 2019/2020|
|up £9,500 per year||0%|
|from £9,500 to £50,000 per year||12%|
|Over £50,000 per year||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 2019/2020
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:
|Employers Class 1 National Insurance 2019/2020|
|up to £8,722 per year||0%|
|Over £8,722 per year||13.8%|
Self Employed National Insurance Contribution Rates for 2019/2020
|Class 2 National Insurance||£3.05 per week on profits over £6,475 per year|
|Class 4 National Insurance||9% on profits between £9,501 and £50,000|
2% on profits over £50,000