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What is National Insurance?
National Insurance is money paid to HMRC by employees, employers, and the self-employed. Paying Class 1 employee's National Insurance contributions entitles you to receive certain state benefits.
Find out more about National Insurance on our accounting glossary.
For detailed rates and thresholds visit the HMRC website.
How to pay Class 1 National Insurance contributions
As an employee (if you're a limited company director, this includes you) your Class 1 National Insurance contributions will be deducted from your salary payments by your employer (the company) every time payroll is run. Find out more about how employers run and report payroll to HMRC using FreeAgent.
National Insurance payments for self-employed people
Class 1 National Insurance contributions are only for employees who receive a salary. If you are self employed you will not pay Class 1 National Insurance contributions; you will pay Class 2 and Class 4 National Insurance instead.
Previous Class 1 National Insurance rates for employees
| 2023-24 | |
|---|---|
| Between the Primary Threshold and the Upper Earnings Limit | 12% |
| Above the Upper Earnings Limit | 2% | 2022-23 (from 6th November 2022) |
| Between the Primary Threshold and the Upper Earnings Limit | 12% |
| Above the Upper Earnings Limit | 2% | 2022-23 (before 6th November 2022) |
| Between the Primary Threshold and the Upper Earnings Limit | 13.25% |
| Above the Upper Earnings Limit | 3.25% | 2021-22 |
| Primary Threshold | 12% |
| Upper Earnings Limit | 2% | 2020-21 |
| Primary Threshold | 12% |
| Upper Earnings Limit | 2% | 2019-20 |
| Primary Threshold | 12% |
| Upper Earnings Limit | 2% | 2018-19 |
| Primary Threshold | 12% |
| Upper Earnings Limit | 2% | 2017-18 |
| Primary Threshold | 12% |
| Upper Earnings Limit | 2% | 2016-17 |
| Primary Threshold | 12% |
| Upper Earnings Limit | 2% | 2014-15 |
| Primary Threshold | 12% |
| Upper Earnings Limit | 2% | 2013-14 |
| Primary Threshold | 12% |
| Upper Earnings Limit | 2% | 2012-13 |
| Primary Threshold | 12% |
| Upper Earnings Limit | 2% |
Previous Class 1 National Insurance thresholds for employees
| 2023-24 | |
|---|---|
| Lower earnings limit | £533/month |
| Between the primary threshold and the upper earnings limit | £1,048/month |
| Above the upper earnings limit | £4,189/month | 2022-23 |
| Lower earnings limit | £533/month |
| Between the primary threshold and the upper earnings limit | £1,048/month |
| Above the upper earnings limit | £4,189/month | 2021-22 |
| Lower earnings limit | £520/month |
| Primary threshold | £797/month |
| Upper earnings limit | £4,189/month | 2020-21 |
| Lower earnings limit | £520/month |
| Primary threshold | £792/month |
| Upper earnings limit | £4,167/month | 2019-20 |
| Lower earnings limit | £512/month |
| Primary threshold | £719/month |
| Upper earnings limit | £4,167/month | 2018-19 |
| Lower earnings limit | £503/month |
| Primary threshold | £702/month |
| Upper earnings limit | £3,863/month | 2017-18 |
| Lower earnings limit | £490/month |
| Primary threshold | £680/month |
| Upper earnings limit | £3,750/month | 2016-17 |
| Lower earnings limit | £486/month |
| Primary threshold | £672/month |
| Upper earnings limit | £3,583/month | 2015-16 |
| Lower earnings limit | £486/month |
| Primary threshold | £672/month |
| Upper earnings limit | £3,532/month | 2014-15 |
| Lower earnings limit | £481/month |
| Primary threshold | £663/month |
| Upper earnings limit | £3,489/month | 2013-14 |
| Lower earnings limit | £473/month |
| Primary threshold | £646/month |
| Upper earnings limit | £3,454/month | 2012-13 |
| Lower earnings limit | £464/month |
| Primary threshold | £633/month |
| Upper earnings limit | £3,540/month |
Disclaimer: The content included on this page is based on our understanding of tax law at the time of publication. It may be subject to change and may not be applicable to your circumstances, so should not be relied upon. You are responsible for complying with tax law and should seek independent advice if you require further information about the content included on this page. If you don't have an accountant, take a look at our directory to find a FreeAgent Practice Partner based in your local area.