National Insurance Contributions

Class 1 Employed not contracted out of state second pension (S2P)
2014/15 2013/14
Employee: Employee:
No NICs where earnings are up to £153 pw No NICs where earnings are up to £149 pw
12% NICs on £153.01-£805 pw 12% NICs on £149.01-£797 pw
2% NICs over £805 pw 2% NICs over £797 pw
Employer: Employer:
No NICs on the first £153 pw No NICs on the first £148 pw
13.8% NICs over £153 pw 13.8% NICs over £148 pw
Employment allowance per business 2014/15 2013/14
Offset against employer's Class 1 NICs £2,000 N/A
Earnings limit or threshold 2014/15 2013/14
   Weekly   Monthly   Annual 
 Weekly 
 Monthly 
 Annual 
£ £ £ £ £ £
Lower earnings limit  111 481 5,772 109 473 5,668
Secondary earnings threshold 153 663 7,956 148 641 7,696
Primary earnings threshold 153 663 7,956 149 646 7,755
Upper accrual point 770 3,337 40,040 770 3,337 40,040
Upper earnings limit 805 3,489 41,865 797 3,454 41,450
Contracted-out S2P rebate 2014/15 2013/14
Reduction on band earnings* £111.01-£770 pw £109.01-£770 pw
Employer rate reduction 3.4% 3.4%
Employee rate reduction 1.4% 1.4%
* Salary related scheme only.    
Class 1A (employers) 2014/15 2013/14
On most taxable benefits provided to P11D employees and directors 13.8% 13.8%
     
Class 2 (self-employed) 2014/15 2013/14
Flat rate £2.75 pw
£143.00 pa
£2.70 pw
£140.40 pa
Small earnings exception £5,885 pa £5,725 pa
     
Class 4 (self-employed) 2014/15 2013/14
On profits £7,956-£41,865 pa
9%
£7,755-£41,450 pa
9%
  Over £41,865 pa
2%
Over £41,450 pa
2%
     
Class 3 (voluntary) 2014/15 2013/14
Flat rate £13.90 pw
£722.80 pa
£13.55 pw
£704.60 pa
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