Budget Summary 2021/22

National Insurance Contributions

National Insurance Contributions (Table D)

Class 1 (Employees) Employee Employer
Main NIC rate 12% 13.8%
No NIC on first £184pw £170pw
Main rate* charged up to £967pw no limit
2% rate on earnings above £967pw N/A
Employment allowance per qualifying business N/A £4,000

*Nil rate of employer NIC for employees under the age of 21 and apprentices under 25, up to £967pw.

Employer contributions (at 13.8%) are also due on most taxable benefits (Class 1A) and on tax paid on an employee’s behalf under a PAYE settlement agreement (Class 1B).

Class 2 (Self employed)

Flat rate per week £3.05
Small profits threshold £6,515

Class 3 (Voluntary)

Flat rate per week £15.40

Class 4 (Self employed)

On profits £9,568 – £50,270 9%
On profits over £50,270 2%