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National Insurance

National Insurance – Rates and Allowances2016-172015-16
Lower weekly earnings limit, primary Class 1£112£112
Upper weekly earnings limit, primary Class 1£827£815
Upper weekly accruals point£770
Primary weekly earnings threshold£155£155
Secondary weekly earnings threshold£156£156
Employees’ primary Class 1 rate between primary earnings threshold and upper earnings limit12%12%
Employees’ primary Class 1 rate above upper earnings limit2%2%
Employees’ contracted-out rebate between primary earnings threshold and upper earnings limit1.40%1.40%
Married women’s reduced rate between primary earnings threshold and upper earnings limit5.85%5.85%
Married women’s rate above upper earnings limit2%2%
Employers’ secondary Class 1 rate above secondary earnings threshold13.80%13.80%
Employers’ contracted-out rebate, final salary-related schemes3.40%3.40%
Class 2 weekly rate£2.80£2.80
Class 2 small earnings exception£5,965 per year£5,965 per year
Special Class 2 weekly rate for share fishermen£3.45£3.45
Special Class 2 weekly rate for volunteer development workers£5.60£5.60
Class 3 voluntary weekly rate£14.10£14.10
Class 4 lower profits limit£8,060 per year£8,060 per year
Class 4 upper profits limit£43,000 per year£42,385per year
Class 4 rate between lower profits limit and upper profits limit9%9%
Class 4 rate above upper profits limit2%2%

 

A tax free allowance of £3,000 (2015-16: £2,000) is available to offset against employers’ Class 1 secondary NICs subject to certain restrictions.

No employers’ contributions are payable in respect of weekly earnings up to £827 paid to employees under 21 nor for qualifying apprentices aged under 25.

 

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