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

    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 is a Chartered Accountant with over a decade of working with small business owners. She is the creator of the ‘Go Self Employed’ website, where she simplifies complicated self-employment topics such as taxes, bookkeeping, banking and insurance.