National Insurance Rates 2024

National Insurance Contribution Rates (NIC) Tax Year 2024 
(06/04/2024 to 05/04/2025)

National Insurance Contributions give us an entitlement to state benefits.  It funds our state pension but also used to fund a second tier state pension called the State Second Pension (S2P) formerly State Earnings Related Pension Scheme (SERPS) which ended in 2016 with the introduction of the new, higher rate State Pension.

When Do You Pay National Insurance Contributions?

Just to complicate things, there is a totally different set of thesholds upon which national insurance contributions are paid.  There are two because sometimes the rates and thesholds differ for employers and employees.

Employees Earnings Primary Threshold (PT) - £242.00 per week, the level of earnings at which employees start to pay Class 1 National Insurance contributions.

Employers Secondary Threshold (ST) - £175.00 per week,  the level of employees earnings at which an employer starts to pay Class 1 National Insurance contributions.

What Do You Pay?

Employed National Insurance Rates:

Employee Payment Rates

• Weekly Earnings - £1 to £242.00 Rate = Nil
• Weekly Earnings - £242.00 to £967.00 Rate = 8.00% (from 6th January 2024)
  
• Weekly Earnings - Excess over £967.00 Rate = 2.00%
  

Employer Rates For Employee Pay

• Weekly Earnings - £1 to £175.00 Rate = Nil
• Weekly Earnings - Excess over £175.00 Rate = 13.80%
  
• Employment Allowance - smaller employers with a total employer NIC liability of £5,000 pa or less get subsidised with a rebate up to £5,000 meaning no employers NIC is due.

Employer Rates for Employees Co.  Car Private Fuel (see Company Cars Fuel) = 13.80%

Self Employed National Insurance Rates:

Class 2 Contributions (profits at or below £12,570.00)

• Annual Profits below £6,725.00 = Nil
• Annual Profits between £6,725.00 - £12,570.00 = Flat Rate = £3.45 per week

Class 4 Contributions (profits exceed £12,570.00)

• Flat Rate (£3.45 per week) = No Longer Payable
• On Annual Profits Between £12,570.00 - £50,270.00 = Rate = 6.00%
  
• On Annual Profits Excess over £50,270.00 = Rate = 2.00%

Voluntary National Insurance Rates

Class 3 Rate (Voluntary Contributions) = £17.45 per week