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National insurance contributions

National insurance contributions and rates in 2013/14

Class 1 (not contracted out) Employer Employee
Lower earnings limit   £109
Payable on weekly earnings    
£109.01-£148 n/a 0%
£148.01 - £149 13.8% 0%
£149.01 - £797 13.8% 12%
Over £797 13.8% 2%
Payable on monthly earnings    
£473.91 - £641 n/a 0%
£641.01 - £646 13.8% 0%
£646.01 - £3,337 13.8% 12%
Over £3,337 13.8% 2%
Over state retirement age 13.8% n/a
Class 1A (on relevant benefits) 13.8% n/a
   
Class 1B (on PAYE settlement arrangement) 13.8%  
   
Class 2 (self employed) £2.70 per week
Class 2 contributions - share fishermen £3.35 per week
Class 2 contributions - volunteer development workers £5.45 per week
Limit of net earnings for exception £5,725 per annum
Contributions cease at state retirement age  
Class 3 (voluntary) £13.55 per week
   
Class 4* (Self employed on profits)  
£7,755 to £41,450 9%
Excess over £41,450 2%
*Exemption applies if state retirement age was reached by 6 April 2013.
   
Maximum contributions  
Class 1 £4,121.28 + 2% of earnings over £41,450 pa.
Class 2 and Class 4 £3,032.55 + 2% of profits over £41,450 pa.

Notes

  1. For children under 16, and employees over state pension age there are no national insurance contributions payable, but employers' contributions remain payable.

Did you know?

That the Treasury is expecting to raise £106.7 billion (2012/13 £103.8 billion) from national insurance contributions. In the current year this represents almost 80 per cent of the receipts from PAYE.