National Insurance Rates

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:

ClassWho Pays
1Employees earning more than £166 a week and under State Pension age (automatically deducted through payroll)
1aEmployers pay these on employee’s expenses or benefits
2Self-employed people earning business profits of more than £6,365 a tax year (but you can choose to pay voluntary contributions)
3Voluntary contributions to fill or avoid gaps in your National Insurance record
4Self-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 year0%
from £9,500 to £50,000 per year12%
Over £50,000 per year2%

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 year0%
Over £8,722 per year13.8%

Self Employed National Insurance Contribution Rates for 2019/2020

 2020/2021
Class 2 National Insurance£3.05 per week on profits over £6,475 per year
Class 4 National Insurance9% on profits between £9,501 and £50,000
2% on profits over £50,000
Anita Forrest
About Anita Forrest

Anita Forrest is a Chartered Accountant, spreadsheet geek, money nerd and creator of www.goselfemployed.co - the UK small business finance blog for the self-employed community. Here she shares simple, straight-forward guides to make self-employment topics like taxes, bookkeeping and banking easy to understand.