National Insurance Contributions

Class 1 (Employees)

Not Contracted-out of State Second Pension (S2P)

	Employee	2015/16 Employer	Employee	2014/15 Employee
NIC rate	12%	13.8%	12%	13.8%
No NICs on the first:
- Under 21	£155 pw	£815 pw	£153 pw	£153 pw
- 21 & over	£155 pw	£156 pw	£153 pw	£153 pw
NICs charged up to	£815 pw	No limit	£805 pw	No limit
NICs on earnings over	£815 pw:2%	N/A	£805 pw:2%	N/A

Employment allowance per business	2015/16	2014/15
Offset against employer’s Class 1 NICs	£2,000	£2,000

Earnings limit or threshold	Weekly	Monthly	2015/16 Annual	Weekly	Monthly	2014/15 Annual
	£	£	£	£	£	£
Lower earnings limit	112	486	5,824	111	481	5,772
Secondary earnings threshold	156	676	8,112	153	663	7,956
Primary earnings threshold	155	672	8,060	153	663	7,956
Upper accrual point	770	3,337	40,040	770	3,337	40,040
Upper earnings limit	815	3,532	42,385	805	3,489	41,865

Contracted-out S2P rebate	2015/16	2014/15
On band earnings*	£112–£770 pw	£111–£770 pw
Employer rebate	3.4%	3.4%
Employee rebate	1.4%	1.4%

*Salary related schemes only.

Class 1A (Employers)	2015/16	2014/15
Most taxable employee benefits	13.8%	13.8%

Class 2 (Self-Employed)	2015/16	2014/15
Flat rate	£2.80 pw £145.60 pa	£2.75 pw £143.00 pa
Small profits threshold	£5,965 pa	£5,885 pa

Class 4 (Self-Employed)	2015/16	2014/15
On profits	£8,060–£42,385 pa 9%	£7,956–£41,865 pa 9%
	Over £42,385 pa 2%	Over £41,865 pa 2%

Voluntary	2015/16	2014/15
Class 3 flat rate	£14.10 pw £733.20 pa	£13.90 pw £722.80 pa
Class 3A (from 12/10/15)	amount depending on age	N/A