National insurance contributions

Class 1 Employed not contracted out of state second pension (S2P)

2014/15

2013/14

Employee:

Employee:

No NICs where earnings are up to £153 pw

No NICs where earnings are up to £149 pw

12% NICs on £153.01-£805 pw

12% NICs on £149.01-£797 pw

2% NICs over £805 pw

2% NICs over £797 pw

Employer:

Employer:

No NICs on the first £153 pw

No NICs on the first £148 pw

13.8% NICs over £153 pw

13.8% NICs over £148 pw

   

Employment allowance per business

2014/15

2013/14

Offset against employer's Class 1 NICs

£2,000

N/A

 

Earnings limit or threshold

2014/15

2013/14

 

 Weekly 

 Monthly 

 Annual 

 Weekly 

 Monthly 

 Annual 

£

£

£

£

£

£

Lower earnings limit

111

481

5,772

109

473

5,668

Secondary earnings threshold

153

663

7,956

148

641

7,696

Primary earnings threshold

153

663

7,956

149

646

7,755

Upper accrual point

770

3,337

40,040

770

3,337

40,040

Upper earnings limit

805

3,489

41,865

797

3,454

41,450

             
Contracted-out S2P rebate 2014/15 2013/14
Reduction on band earnings* £111.01-£770 pw £109.01-£770 pw
Employer rate reduction 3.4% 3.4%
Employee rate reduction 1.4% 1.4%
     
* Salary related schemes only.
     
Class 1A (employers) 2014/15 2013/14
On most taxable benefits provided to P11D employees and directors 13.8% 13.8%
     
Class 2 (self-employed) 2014/15 2013/14
Flat rate £2.75 pw
£143.00 pa
£2.70 pw
£140.40 pa
Small earnings exception £5,885 pa £5,725 pa
     
Class 4 (self-employed) 2014/15 2013/14
On profits £7,956-£41,865 pa
9%
£7,755-£41,450 pa
9%
  Over £41,865 pa
2%
Over £41,450 pa
2%
     
Class 3 (voluntary) 2014/15 2013/14
Flat rate £13.90 pw
£722.80 pa
£13.55 pw
£704.60 pa
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