Tax Rates 2023/24
National Insurance Contributions
Class 1 (Employees)
|Main NIC rate||12%||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 qualifying 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 2022/23.
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 above £12,570||£3.45|
Class 3 (Voluntary)
|Flat rate per week||£17.45|
Class 4 (Self employed)
|On profits £12,570 – £50,270||9%|
|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.