Class 1

Employee

Employer

NICs rate

12%

13.8%

No NICs for employees generally on the first

£242 pw

£175 pw

No NICs for younger employees* on first 

£242 pw

£967 pw

NICs rate charged up to

£967 pw

No limit

2% NICs on earnings over

£967 pw

N/A

*No employer NICs on the first £967 pw for employees generally under 21 years, apprentices under 25 years and veterans in first 12 months of civilian employment. No employer NICs on the first £481 pw for employees at freeports and investment zones in Great Britain in the first three years of employment

Limits and thresholds

Weekly

Monthly

Annual

Lower earnings limit

£123

£533

£6,396

Primary threshold

£242

£1,048

£12,570

Secondary threshold

£175

£758

£9,100

Upper earnings limit (and upper secondary thresholds for younger/veteran employees and apprentices under 25)

£967

£4,189

£50,270

Employment Allowance

£5,000

Per business - not available if sole employee is a director or employer's NICs for 22/23 are £100,000 or more

Class 1A Employer On most employees' and directors' taxable benefits (annual)

13.8%

Class 2 Self-employed

Flat rate per week

£3.45

(£179.40 pa)

Small profits threshold

£6,725

Lower profits limit

£12,570

Class 4 Self-employed On annual profits of

£12,570 to £50,270:

 9%

Over £50,270:

 2%

Class 3 Voluntary flat rate per week

£17.45

(£907.40 pa)