National Insurance Contributions

There are different ‘classes’ of National Insurance (NI). The type people pay depends on their employment status and how much they earn.

New National Insurance bands and allowances are usually announced in the Chancellor of the Exchequer’s Budget or Autumn Statement. This and the below information can be found on the Gov.uk website.

Class 1 National Insurance Thresholds for 2024

• Lower Earnings Limit (LEL) = £123 per week or £533 per month
  (Employees do not pay National Insurance but get the benefits of paying)

• Primary Threshold (PT) = £242 per week or £1048 per month
  (Employees start paying National Insurance)

• Secondary Threshold (ST) = £175 per week or £758 per month
  (Employers start paying National Insurance)

• Upper Earnings Limit (UEL) = £967 per week or £4189 per month
  (All employees pay a lower rate of National Insurance above this point)

• Upper Secondary Threshold (UST) = £967 per week or £4189 per month
  Employers of employees who are under 21 pay zero rate up to this point)

• Apprentice Upper Secondary Threshold (AUST) = £967 per week or £4189 per month
  (Employers of certain apprentices who are under 25 pay zero rate up to this point)

• Freeports Upper Secondary Threshold (FUST) = £481 per week or £2083 per month
  (Employers of eligible employees working in a freeport special tax site pay zero rate up to this point)

• Investment Zones Upper Secondary Threshold (IZUST) = £481 per week or £2083 per month
  (Employers of eligible employees working in an investment zone special tax site pay zero rate up to this point)

• Veterans Upper Secondary Threshold (VUST) = £967 per week or £4189 per month
  (Employers of qualifying employees pay zero rate up to this point)

For previous years please look on the Gov.uk website.

Class 2 National Insurance Thresholds for 2024

Employer rates

• Rate above the Secondary Threshold = 13.8%

• Rate below Upper Secondary Threshold = 0%

• Rate below Freeports Upper Secondary Threshold = 0%

• Rate below Apprentice Upper Secondary Threshold = 0%

• Rate below Investment Zones  Upper Secondary Threshold = 0%

• Rate below Veterans Upper Secondary Threshold = 0%

• Class 1A rate on expenses and benefits = 13.8%

Employee rates

• Between Primary Threshold and Upper Earnings Limit = 8%

• Above Upper Earnings Limit = 2%

• Married women’s reduced rate between primary threshold and upper earnings limit = 1.85%

• Rate for employees deferring National Insurance = 2%

For 2023 to 2024 and 2022 to 2023, the National Insurance contributions rates for directors are different. Read CA44 to find out more about rates for directors.

Class 2 and Class 4 National Insurance (self employed) Thresholds for 2024

There are 2 types of National Insurance for people who work for themselves, depending on their profits.

Class 2

• Small Profits Threshold amount per year = £6725

• Rate per week = £3.45

Class 4

• Lower Profits Limit = £12,570
  (Self-employed people start paying Class 4 National Insurance)

• Upper Profits Limit = £50,270
  (Self-employed people pay a lower rate)

• Rate between Lower Profits Limit and Upper Profits Limit= 6%

• Rate above Upper Profits Limit = 2%

Special rates

• Special Class 2 rate for share fishermen = £4.10 per week

• Special Class 2 rate for volunteer development workers = £6.15 per week

• Additional Class 4 rate when deferring National Insurance = 2%

Class 3 National Insurance (voluntary) Thresholds for 2024

You can pay voluntary National Insurance to fill or avoid gaps in your record.

If you’re paying voluntary contributions for the previous 2 tax years (2023 to 2024 or 2022 to 2023), you’ll pay the original rates for those years.

For all other years you’ll pay the current rate (2024 to 2025).

• Class 3 rate = £17.45 per week

To view monthly direct debit payments, dates and historical threshold rates, take a look on the Gov.uk website.