Class 1 employee's National Insurance rates 2017/18

(Last updated 06/04/17)

12%

Primary Threshold

On earnings from £162 to £865/week.

2%

Upper Earnings Limit

On earnings over £866/week.

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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

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

2017-18
Primary threshold £680/month
Lower earnings limit £490/month
Upper earnings limit £3,750/month
2016-17
Primary threshold £672/month
Lower earnings limit £486/month
Upper earnings limit £3,583/month
2015-16
Primary threshold £672/month
Lower earnings limit £486/month
Upper earnings limit £3,532/month
2014-15
Primary threshold £663/month
Lower earnings limit £481/month
Upper earnings limit £3,489/month
2013-14
Primary threshold £646/month
Lower-earnings limit £473/month
Upper earnings limit £3,454/month
2012-13
Primary-threshold £633/month
Lower-earnings limit £464/month
Upper earnings limit £3,540/month

FreeAgent is easy-to-use accounting software for small businesses and freelancers. Get started on a 30-day free trial!