The UK’s National Insurance Bands and Rates have never been so straightforward, said no-one never!
It’s worth us noting that everything is different for employees, sole trader and limited company directors, so if you are confused by anything below, check with HMRC or your accountant.
Your National Insurance contributions are calculated weekly, but many people like to see their annual contribution. Below you’ll find the National Insurance Bands you need to be aware of and some all important National Insurance facts for 2017/2018.
Employee National Insurance Contribution Bands for 2017/2018
Lower earnings limit (LEL) – Earnings below this amount will incur no NICs – £113 per week / £5,876 per year
Primary threshold (PT) – Earnings below this amount will incur no NICs – £157 per week / £8,164 per year
Upper earnings limit (UEL) – Earnings above the Primary threshold and below the Upper earnings limit will be taxed at 12% – £866 per week / £45,000 per year
Employer National Insurance Contribution Bands for 2017/2018
Secondary threshold (ST) – Income above this will incur Employer NICs at a rate of 13.8% – £157 per week / £8,164 per year
Self-employed National Insurance Contribution BANDS for 2017/2018
Small profits threshold (SPT) – Earnings below this amount incur no NICs – £6,025 per year
Lower Profits limit (LPT) – Earnings up to this limit incur Class 2 NICs – £8,164 per year
Class 2 NICs – £2.85 per week
Upper profits limit (UPL) – Earnings up to this limit incur further Class 2 NICs and Class 4 NICs of 9%. – £866 per week / £45,000 per year
Find out More: How Much Tax Do You Pay as A Sole Trader?