Class 1

Employee

Employer

NICs rate

13.25%

15.05%

No NICs for employees generally on the first

£190 pw

£175 pw

No NICs* for:  
younger/veteran employees on first             
freeport employees on first                          

£190 pw 
£190 pw

£967 pw
£481 pw

NICs rate charged up to

£967 pw

No limit

3.25% NICs on earnings over

£967 pw

N/A

* Employees generally under 21 years and apprentices under 25 years.  Veterans in first 12 months of civilian employment. Employees at freeports in Great Britain in the first three years of employment starting from 6 April 2022.

Employment Allowance

£4,000

Per business - not available if sole employee is a director or employer’s NICs for 21/22 £100,000 or more

Limits and thresholds

Weekly

Annual

Lower earnings limit

£123

£6,396

Primary threshold

£190

£9,880

Secondary threshold

£175

£9,100

Upper earnings limit (and upper secondary thresholds)

£967

£50,270

Class 1A Employer On car and fuel benefits and most other taxable benefits provided to employees and directors

15.05%

Class 2 Self-employed Flat rate per week

£3.15

(£163.80 pa)

Small profits threshold No compulsory NICs if annual profits less than      

£6,725

Class 4 Self-employed On annual profits of

£9,880 to £50,270:

10.25%

Over £50,270:

3.25%

Class 3 Voluntary flat rate per week

£15.85

(£824.20 pa)