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Employees start paying Class 1 NIC from age 16 (if sufficient earnings).
Employers pay Class 1 NIC in accordance with the table below.
Employer NIC for employees under the age of 21 and apprentices under the age of 25 is reduced from the normal rate to 0% up to the Upper Secondary Threshold of £967 per week. Also applies to veterans in the first 12 months of employment.
Employees Class 1 NIC stop when they reach their 'State Pension age'. The employer's contribution continues.
Entitlement to state pension and other 'contribution-based benefits' is retained for earnings between £125 and £242 per week.
Entitlement to state pension and other 'contribution-based benefits' is retained for earnings between £123 and £242 per week.
15% (13.8% 2024/25) on broadly all taxable benefits provided to employees and on certain taxable termination and sporting testimonial payments in excess of £30,000.
15% (13.8% 2024/25) on taxable PAYE Settlement Agreements.
A self-employed person starts paying Class 2 and Class 4 NIC from 16 or over (if sufficient profits).
Class 2 NIC stop when a person reaches State Pension age.
From 6 April 2024, there is no longer a requirement to pay Class 2. Voluntary contributions can still be made.
Class 4 NIC stop from the start of the tax year after the one in which the person reaches State Pension age.
A self-employed person with profits below the Small Profits Threshold might decide to carry on paying Class 2 voluntarily to accrue entitlement to the State Pension and other benefits.
A person needs 35 years (30 years if State Pension age is before 6 April 2016) of NIC to get a full State Pension.
Class 3 voluntary contributions can be paid to fill or avoid gaps in a NI record.
Flat rate per week: £17.75
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