National Insurance – Rates and Allowances | 2021-22 | 2020-21 | Lower weekly earnings limit, primary Class 1 | £120 | £120 | Upper weekly earnings limit, primary Class 1 | £967 | £962 | Primary weekly earnings threshold | £184 | £183 | Secondary weekly earnings threshold | £170 | £169 | Employees’ primary Class 1 rate between primary earnings threshold and upper earnings limit | 12% | 12% | Employees’ primary Class 1 rate above upper earnings limit | 2% | 2% | Married women’s reduced rate between primary earnings threshold and upper earnings limit | 5.85% | 5.85% | Married women’s rate above upper earnings limit | 2% | 2% | Employers’ secondary Class 1 rate above secondary earnings threshold | 13.80% | 13.80% | Class 2 weekly rate | £3.05 | £3.05 | Class 2 small earnings exception | £6,515 per year | £6,475 per year | Special Class 2 weekly rate for share fishermen | £3.70 | £3.70 | Special Class 2 weekly rate for volunteer development workers | £6.00 | £6.00 | Class 3 voluntary weekly rate | £15.40 | £15.30 | Class 4 lower profits limit | £9,568 per year | £9,500 per year | Class 4 upper profits limit | £50,270 per year | £50,000 per year | Class 4 rate between lower profits limit and upper profits limit | 9% | 9% | Class 4 rate above upper profits limit | 2% | 2% |
A National Insurance tax free allowance of £4,000 (2020-21: £4,000) is available to offset against employers’ Class 1 secondary NICs subject to certain restrictions. The allowance is restricted to employers with employer NIC liabilities of under £100,000. No employers’ contributions are payable in respect of weekly earnings up to £967 paid to employees under 21 nor for qualifying apprentices aged under 25. Disclaimer In preparing and maintaining this section of our website every effort has been made to ensure the content is up to date and accurate. However, the law and regulations change continually, and unintentional errors can occur, and the information may be neither up to date nor accurate. We make no representation or warranty (including liability towards third parties), express or implied, as to the accuracy, reliability or completeness of the information on the website. Please don’t act directly on anything you read – contact us first for advice on how it may affect your individual circumstances. |
