Autumn Statement 2016 – National Insurance

November 29th, 2016

Class 1 employee 2016/17 2017/18
Employee Employer Employee Employer
NIC rate 12% 13.8% 12% 13.8%
No NICs on the first:

Under 21*

21 & over*

 

£155 pw

£155 pw

 

£827 pw

£156 pw

 

£157 pw

£157 pw

 

£866 pw

£157 pw

NICs charged up to £827 pw No limit £866 pw No limit
2% NICs on earnings over £827 pw N/A £866 pw N/A
Certain married women 5.85% 13.8% 5.85% 13.8%

*25 for apprentices

 

Employment Allowance £3,000 £3,000
Payable per business. Not available if a director is the sole employee

 

Limits and thresholds 2017/18
Weekly Annual
Lower earnings limit £113 £5,876
Primary earnings threshold £157 £8,164
Secondary earnings threshold £157 £8,164
Upper earnings limit and upper secondary earnings threshold (under 21 or apprentice under 25) £866 £45,000

 

Class 1A Employer 2016/17 2017/18
On car & fuel benefits and most other taxable benefits provided to employees and directors 13.8% 13.8%

 

Self-employed 2016/17 2017/18
Class 2
Flat rate £2.80 pw  £145.60 pa £2.85 pw  £148.20 pa
Small profits threshold £5,965 £6,025
Class 4
On profits £8,060 – £43,000 pa: 9%

Over £43,000 pa: 2%

£8,164 – £45,000 pa: 9%

Over £45,000 pa: 2%

Voluntary
Class 3 Flat rate £14.10 pw £733.20 pa £14.25 pw £741.00 pa
Class 3A if reached state pension age pre 6/4/2016  

Amount depending on age

 

Amount depending on age