NATIONAL INSURANCE CONTRIBUTIONS Class 1 - Employers and employees
6/4/22–5/7/22
6/7/22–5/4/23
2021/22
Lower earnings limit (LEL) per week Primary threshold per week Secondary threshold per week Upper earnings limit (UEL) per week
£123 £190 £175 £967
£123 £242 £175 £967
£120 £184 £170 £967
Earnings over the LEL qualify an individual for certain state benefits and must be reported under PAYE, but no employee’s NICs are payable until earnings exceed the primary threshold of £190 per week (£242 from 6 July 2022) and £11,908 per annum and employer’s NICs once earnings exceed the secondary threshold of £175 per week (£9,100 per annum).
Class 1 – Employer’s - Rate above secondary threshold (no upper limit) Class 1 – Employee’s - Rate between primary threshold and UEL - Rate above UEL - Married women and widows rate above threshold, below UEL (3.25%/2% above respectively) Class 1A (taxable benefits) Class 1B (PAYE settlement agreement) Class 2 (self-employed) - Small profits threshold (SPT) - Flat rate per week between SPT and LPL - Flat rate per week above LPL Class 3 (voluntary) - Flat rate per week Class 4 (self-employed) - Lower profits limit (LPL) - Upper profits limit (UPL) - Rate between limits - Rate above upper limit Employment allowance (per employer)*
15.05%
13.8%
13.25%
12%
3.25% 7.1%
2% 5.85%
15.05% 15.05% £6,725
13.8% 13.8% £6,515
£0 £3.15 £15.85 £11,908 £50,270 10.25% 3.25% £5,000
£3.05 £3.05 £15.40 £9,568 £50,270 9% 2% £4,000
For 2022/23 only Class 1 and Class 4 NIC rates have been temporarily increased by 1.25%. From 2023/24 the rates will revert and a separate Health and Social Care Levy will be introduced. * Businesses will not qualify for the Employment Allowance where they are sole director companies or have an employer’s Class 1 NIC bill of more than £100,000 In the previous tax year. 12
