Class 1 employee's National Insurance rates 2016/17

(Last updated 23/02/16)

12%

Primary Threshold

On earnings from £672.01 to £3,583/month

2%

Upper Earnings Limit

On earnings over £3,583/month

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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

2015-16
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

2015-16
Primary threshold £672
Lower earnings limit £486
Upper earnings limit £3,532
2014-15
Primary threshold £663
Lower earnings limit £481
Upper earnings limit £3,489
2013-14
Primary threshold £646
Lower-earnings limit £473
Upper earnings limit £3,454
2012-13
Primary-threshold £633
Lower-earnings limit £464
Upper earnings limit £3,540

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