National Insurance Rates
There are different variations of National Insurance. Depending on an individuals employment status and how much they earn outlines which band a person fits under.
Class 1 National Insurance Thresholds
Employers and employees pay Class 1 National Insurance, which depends on how much the employee earns. You can view the weekly/monthly earnings thresholds below.
| £ Per Week | 2016 to 2017 | 2015 to 2016 | 2014 to 2015 | 2013 to 2014 |
| Lower Earnings Limit (LEL) Employees don’t pay NI but get the benefits of paying |
£112 | £112 | £111 | £109 |
| Primary Threshold (PT) Employees start paying NI |
£155 | £155 | £153 | £149 |
| Secondary Threshold (ST) Employers start paying NI |
£156 | £156 | £153 | £148 |
| Upper Accrual Point (UAP) Employees with a contracted-out pension pay a lower rate of NI up to this point |
N/A | £770 | £770 | £770 |
| Upper Earnings Limit (UEL) All employees pay a lower rate of NI above this point |
£827 | £815 | £805 | £797 |
| Upper Secondary Threshold (UST) Employers of employees who are under 21 pay zero rate up to this point |
£827 | £815 | N/A | N/A |
| Apprentice Upper Secondary Threshold (AUST) Employers of certain apprentices who are under 25 pay zero rate up to this point |
£827 | N/A | N/A | N/A |
| £ Per Month | 2016 to 2017 | 2015 to 2016 | 2014 to 2015 | 2013 to 2014 |
| Lower Earnings Limit (LEL) Employees don’t pay NI but get the benefits of paying |
£486 | £486 | £481 | £473 |
| Primary Threshold (PT) Employees start paying NI |
£672 | £672 | £663 | £646 |
| Secondary Threshold (ST) Employers start paying NI |
£676 | £676 | £663 | £641 |
| Upper Accrual Point (UAP) Employees with a contracted-out pension pay a lower rate of NI up to this point |
N/A | £3,337 | £3,337 | £3,337 |
| Upper Earnings Limit (UEL) All employees pay a lower rate of NI above this point |
£3,583 | £3,532 | £3,489 | £3,454 |
| Upper Secondary Threshold (UST) Employers of employees who are under 21 pay zero rate up to this point |
£3,583 | £3,532 | N/A | N/A |
| Apprentice Upper Secondary Threshold (AUST) Employers of certain apprentices who are under 25 pay zero rate up to this point |
£3,583 | N/A | N/A | N/A |
Class 1 National Insurance (Employer and Employee)
The table below illustrates how much an employer must pay towards their employees’ National Insurance as well as how much an employer deducts from their employees’ pay.
| Employer Rates | 2016 to 2017 | 2015 to 2016 | 2014 to 2015 | 2013 to 2014 |
| Rate above the Secondary Threshold | 13.8% | 13.8% | 13.8% | 13.8% |
| Rate below Upper Secondary Threshold | 0% | 0% | N/A | N/A |
| Rate below Apprentice Upper Secondary Threshold | 0% | N/A | N/A | N/A |
| Rebate for any employees in contracted-out pension schemes | N/A | 3.4% | 3.4% | 3.4% |
| Rebate for any employees in money-purchase schemes | N/A | N/A | N/A | N/A |
| Class 1A rate on expenses and benefits | 13.8% | 13.8% | 13.8% | 13.8% |
| Employee Rates | 2016 to 2017 | 2015 to 2016 | 2014 to 2015 | 2013 to 2014 |
| Between Primary Threshold and Upper Earnings Limit | 12% | 12% | 12% | 12% |
| Above Upper Earnings Limit | 2% | 2% | 2% | 2% |
| Rebate for employees in contracted-out workplace pension schemes | N/A | 1.4% | 1.4% | 1.4% |
| Rebate for any employees in contracted-out pension schemes | N/A | 3.4% | 3.4% | 3.4% |
| Married women’s reduced rate between primary threshold and upper earnings limit | 5.85% | 5.85% | 5.85% | 5.85% |
| Rate for employees deferring National Insurance | 2% | 2% | 2% | 2% |
Class 2 and Class 4 National Insurance (Self-employed)
There are two types of National Insurance for individuals who are self-employed which is based off their profits.
| Class 2 | 2016 to 2017 | 2015 to 2016 | 2014 to 2015 | 2013 to 2014 |
| Small Profits Threshold amount per year | £5965 | £5965 | – | – |
| ‘Small earnings exception’ amount per year Self-employed people start paying Class 2 NI |
N/A | Abolished | £5,885 | £5,725 |
| Rate per week | £2.80 | £2.80 | £2.75 | £2.70 |
| Class 4 | 2016 to 2017 | 2015 to 2016 | 2014 to 2015 | 2013 to 2014 |
| Lower Profits Limit Self-employed people start paying Class 4 NI |
£8,060 | £8,060 | £7,956 | £7,755 |
| Upper Profits Limit Self-employed people pay a lower rate |
£43,000 | £42,385 | £41,865 | £41,450 |
| Rate between Lower Profits Limit and Upper Profits Limit | 9% | 9% | 9% | 9% |
| Rate above Upper Profits Limit | 2% | 2% | 2% | 2% |
| Special Rates | 2016 to 2017 | 2015 to 2016 | 2014 to 2015 | 2013 to 2014 |
| Special Class 2 rate for share fishermen | £3.45 | £3.45 | £3.40 | £3.35 |
| Special Class 2 rate for volunteer development workers | £5.60 | £5.60 | £5.55 | £5.45 |
| Additional Class 4 rate when deferring National Insurance | 2% | 2% | 2% | 2% |
Class 3 National Insurance (Voluntary)
There is also an option for people to pay voluntary National Insurance as a way to avoid gaps in their records.
| £ per week | 2016 to 2017 | 2015 to 2016 | 2014 to 2015 | 2013 to 2014 |
| Class 3 rate | £14.10 | £14.10 | £13.90 | £13.55 |
Need help with National Insurance?
We offer a National Insurance service for individuals and business so you can make the appropriate payments to the HMRC. For further information on a range of important dates, take a look at our Tax Calendar.
Simply get in touch now by calling us on 01823 325610 or emailing us at more@handhaccountants.com.
