Tax Rates 2024/25
Autumn Statement

National Insurance Contributions

Class 1 (Employees)
Employee Employer
Main NIC rate 8% 13.8%
No NIC on first £242pw £175pw
Main rate charged up to* £967pw no limit
2% rate on earnings above £967pw N/A
Employment allowance per business** N/A £5,000

*Nil rate of employer NIC on earnings up to £967pw for employees aged under 21, apprentices aged under 25 and ex-armed forces personnel in their first twelve months of civilian employment.

**Some businesses do not qualify, including certain sole director companies and employers who have an employer’s Class 1 NIC liability of £100,000 or more for 2023/24.

Employer contributions (at 13.8%) are also due on most taxable benefits (Class 1A) and on tax paid on an employee’s behalf under a PAYE settlement agreement (Class 1B).

Class 2 (Self employed)
Flat rate per week if profits below £6,725 (voluntary) £3.45
Class 3 (Voluntary)
Class3: Flat rate per week £17.45
Class 4 (Self employed)
On profits £12,570 – £50,270 6%
On profits over £50,270 2%

Employees with earnings above £123pw and the self-employed with profits over £6,725 access entitlement to contributory benefits.