Guidance

Rates and allowances: National Insurance contributions

Updated 6 April 2018

There are different ‘classes’ of National Insurance (NI). The type people pay depends on their employment status and how much they earn.

New National Insurance bands and allowances are usually announced in the Chancellor of the Exchequer’s Budget or Autumn Statement.

1. Class 1 National Insurance thresholds

Employers and employees pay Class 1 National Insurance depending on how much the employee earns. You can view these earnings thresholds by week (table 1.1) or by month (table 1.2).

1.1 Weekly thresholds

£ per week	2018 to 2019	2017 to 2018	2016 to 2017	2015 to 2016
Lower Earnings Limit (LEL) Employees don’t pay National Insurance but get the benefits of paying	£116	£113	£112	£112
Primary Threshold (PT) Employees start paying National Insurance	£162	£157	£155	£155
Secondary Threshold (ST) Employers start paying National Insurance	£162	£157	£156	£156
Upper Accrual Point (UAP) Employees with a contracted-out pension pay a lower rate of National Insurance up to this point	N/A	N/A	N/A	£770
Upper Earnings Limit (UEL) All employees pay a lower rate of National Insurance above this point	£892	£866	£827	£815
Upper Secondary Threshold (UST) Employers of employees who are under 21 pay zero rate up to this point	£892	£866	£827	£815
Apprentice Upper Secondary Threshold (AUST) Employers of certain apprentices who are under 25 pay zero rate up to this point	£892	£866	£827	N/A

1.2 Monthly thresholds

£ per month	2018 to 2019	2017 to 2018	2016 to 2017	2015 to 2016
Lower Earnings Limit (LEL) Employees don’t pay National Insurance but get the benefits of paying	£503	£490	£486	£486
Primary Threshold (PT) Employees start paying National Insurance	£702	£680	£672	£672
Secondary Threshold (ST) Employers start paying National Insurance	£702	£680	£676	£676
Upper Accrual Point (UAP) Employees with a contracted-out pension pay a lower rate of National Insurance up to this point	N/A	N/A	N/A	£3,337
Upper Earnings Limit (UEL) All employees pay a lower rate of National Insurance above this point	£3,863	£3,750	£3,583	£3,532
Upper Secondary Threshold (UST) Employers of employees who are under 21 pay zero rate up to this point	£3,863	£3,750	£3,583	£3,532
Apprentice Upper Secondary Threshold (AUST) Employers of certain apprentices who are under 25 pay zero rate up to this point	£3,863	£3,750	£3,583	N/A

2. Class 1 National Insurance rates

2.1 Employer rates

This table shows how much employers pay towards their employees’ National Insurance.

	2018 to 2019	2017 to 2018	2016 to 2017	2015 to 2016
Rate above the Secondary Threshold	13.8%	13.8%	13.8%	13.8%
Rate below Upper Secondary Threshold	0%	0%	0%	0%
Rate below Apprentice Upper Secondary Threshold	0%	0%	0%	N/A
Rebate for any employees in contracted-out pension schemes	N/A	N/A	N/A	3.4%
Rebate for any employees in money-purchase schemes	N/A	N/A	N/A	N/A
Class 1A rate on expenses and benefits	13.8%	13.8%	13.8%	13.8%

2.2 Employee rates

This table shows how much employers deduct from employees’ pay.

	2018 to 2019	2017 to 2018	2016 to 2017	2015 to 2016
Between Primary Threshold and Upper Earnings Limit	12%	12%	12%	12%
Above Upper Earnings Limit	2%	2%	2%	2%
Rebate for employees in contracted-out workplace pension schemes	N/A	N/A	N/A	1.4%
Married women’s reduced rate between primary threshold and upper earnings limit	5.85%	5.85%	5.85%	5.85%
Rate for employees deferring National Insurance	2%	2%	2%	2%

3. Class 2 and Class 4 National Insurance (self-employed)

There are 2 types of National Insurance for people who work for themselves, depending on their profits.

3.1 Class 2

	2018 to 2019	2017 to 2018	2016 to 2017	2015 to 2016
Small Profits Threshold amount per year	£6,205	£6,025	£5,965	£5,965
Rate per week	£2.95	£2.85	£2.80	£2.80

3.2 Class 4

£ per year	2018 to 2019	2017 to 2018	2016 to 2017	2015 to 2016
Lower Profits Limit Self-employed people start paying Class 4 National Insurance	£8,424	£8,164	£8,060	£8,060
Upper Profits Limit Self-employed people pay a lower rate	£46,350	£45,000	£43,000	£42,385
Rate between Lower Profits Limit and Upper Profits Limit	9%	9%	9%	9%
Rate above Upper Profits Limit	2%	2%	2%	2%

3.3 Special rates

£ per week	2018 to 2019	2017 to 2018	2016 to 2017	2015 to 2016
Special Class 2 rate for share fishermen	£3.60	£3.50	£3.45	£3.45
Special Class 2 rate for volunteer development workers	£5.80	£5.65	£5.60	£5.60
Additional Class 4 rate when deferring National Insurance	2%	2%	2%	2%

4. Class 3 National Insurance (voluntary)

People can pay voluntary National Insurance to fill or avoid gaps in their record.

£ per week	2018 to 2019	2017 to 2018	2016 to 2017	2015 to 2016
Class 3 rate	£14.65	£14.25	£14.10	£14.10

Monthly Direct Debit payments for 2018 to 2019

How much you pay depends on whether there are 4 or 5 weeks in the month.

Payment date	Amount
11 May 2018	£58.60
08 June 2018	£73.25
13 July 2018	£58.60
10 August 2018	£73.25
14 September 2018	£58.60
12 October 2018	£58.60
09 November 2018	£73.25
14 December 2018	£58.60
11 January 2019	£58.60
08 February 2019	£73.25
08 March 2019	£58.60
12 April 2019	£58.60

5. Historical and future rates

You can view National Insurance rates and thresholds for previous tax years.

There will be new National Insurance rates and thresholds from 6 April 2018.

6. Income Tax rates

You can see Income Tax rates for the current and previous tax years.