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Tax Tables

National Insurance

2020/21

2020/21

Class 1 Primary - Employees' NIC

Category Letter

Below £120

£120 - £183

£183 - £962

Over £962

 

Lower Earnings Limit

Lower Earnings to Primary Threshold

Primary Threshold to Upper Limit

Above Upper Limit

A 0% 0% 12% 2%
B 0% 0% 5.9% 2%
C N/A N/A N/A N/A
H 0% 0% 12% 2%
J 0% 0% 2% 2%
M 0% 0% 12% 2%
Z 0% 0% 2% 2%
 

2020/21

Class 1 Secondard - Employers' NIC

Category Letter

Below £120

£120 - £169

£169 - £962

Over £962

 

Lower Earnings Limit

Lower Earnings to Secondary Threshold

Secondary Threshold to Upper Limit

Above Upper Limit

A 0% 0% 13.8% 13.8%
B 0% 0% 13.8% 13.8%
C N/A N/A 13.8% 13.8%
H 0% 0% 0% 13.8%
J 0% 0% 13.8% 13.8%
M 0% 0% 0% 13.8%
Z 0% 0% 0% 13.8%
 

Other National Insurance Classes

Class

Rate

Detail

Class 1A

13.8%

On benefits in kind. Payable on 19th (paper) or 22nd July (online) following the end of the tax year.

Class 1B

13.8%

On PAYE Settlement Agreement benefits. Payable by 19th (Paper) or 22nd (Electronic) October following the end of the tax year.

Class 2

£3.05 per week, mandatory above £6,475 profits per annum

Voluntary contributions below annual profits of £6,475. £3.00 in 2019/20

Class 3

£15.30 per week

Voluntary contributions - £15.00 in 2019/20

 

 

 

 

Class 4 - Self-employed

Profits

2020/21

2019/20

Below £9,500

0%

0%

Between £9,500 and £50,000 per annum (£8,632 and £50,000 for 2019/20)

9%

9%

Over £50,000 per annum

2%

2%

 

 

 


 

NIC Thresholds

Category

Per Week

Lower Earnings Limit

£120.00

Primary (Employee) Threshold

£183.00

Secondary (Employer) Threshold

£169.00

Below £9,500

£962.00

Apprentice Upper Secondary Threshold (Under 25)

£962.00

Upper Earnings Limit

£962.00

 

 


 

National Insurance Category Letters

Letter

Employee group

A

All employees except those who fall into below categories

B

Eligible married women and widows paying reduced NIC

C

Over state pension age

J

Deferred NIC through already paying in other employment

H

Apprentice under 25

M

Under 21

X

Does not pay NIC e.g. under 16

Z

Under 21 deferred through already paying in other employment

 

 


Notes

Employment Allowance - Reduction in Employer's NIC of up to £4,000 per annum (limited to Employer's actual NIC). Effective from 6 April 2020.

Apprenticeship Levy - Employers are be required to pay the Levy, which is set at a rate of 0.5% of an employer's annual pay bill. This is collected through the PAYE system. The pay bill is the total amount of earnings liable to employer's Class 1 NIC, including earnings below the secondary threshold. Where the age-related secondary percentage of MC is 0% e.g for employees under the age of 21, such earnings are included in calculating the pay bill.

Employers receive an annual allowance of £15,000 to offset against payment of the Levy, and therefore the Levy will only be payable by employers who have to pay bilis in excess of £3million per year. Where two or more companies are connected, the allowance is spread between the companies.

 

2019/20

2019/20

Employee's NIC

Category Letter

Below £118

£118 - £166

£166.01 - £962

 

 

(£116) per week

(£116 - £162) per week

£162.02 - £892) per week

Over £966 (£892) per week

A 0% 0% 12% 2%
B 0% 0% 5.85% 2%
C N/A N/A N/A N/A
H 0% 0% 12% 2%
J 0% 0% 2% 2%
M 0% 0% 12% 2%
Z 0% 0% 2% 2%
 

Class 1

Employees

Employers*

Weekly earnings 2019/20

 

 

On first £166

Over 21

NIL

NIL

 

Under 21

NIL

NIL

£166.01 to £962

Over 21

12%

13.8%

 

Under 21 apprentice

12%

NIL

£962 and above

Over 21

2%

13.8%

 

Under 21

2%

13.8%

 

2018/19

2018/19

Employee's NIC

Category Letter

Below £118

£118 - £166

£166.01 - £962

 

 

(£116) per week

(£116 - £162) per week

£162.02 - £892) per week

Over £966 (£892) per week

A 0% 0% 13.8% 13.8%
B 0% 0% 13.8% 13.8%
C N/A N/A 13.8% 13.8%
H 0% 0% 0% 13.8%
J 0% 0% 13.8% 13.8%
M 0% 0% 0% 13.8%
Z 0% 0% 0% 13.8%
 

Class 1

Employees

Employers*

Weekly earnings 2018/19

 

 

On first £162

Over 21

NIL

NIL

 

Under 21

NIL

NIL

£162.01 to £892

Over 21

12%

13.8%

 

Under 21 apprentice

12%

NIL

£892.01 and above

Over 21

2%

13.8%

 

Under 21

2%

13.8%

       

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