Table of Contents
How is national insurance calculated?
National Insurance is calculated on gross earnings (before tax or pension deductions) or profits (earnings minus allowable expenses) above a threshold. The rate you pay depends on whether you are employed or self-employed.
What is the current rate of National Insurance?
The National Insurance rate you pay depends on how much you earn, and is made up of: 13.25% of your weekly earnings between £190 and £967 (2022/23) 3.25% of your weekly earnings above £967.
What is the basic rate of tax and National Insurance?
National Insurance rates
| Paid by Employees | Paid by Employers | |
|---|---|---|
| Income per year | Rate | Rate |
| Below £9,880 | 0% | 0% |
| £9,881 – £50,270 | 13.25% | 15.05% |
| Above £50,271 | 3.25% | 15.05% |
What are the National Insurance categories?
Category letters
| Category letter | Employee group |
|---|---|
| C | Employees over the State Pension age |
| H | Apprentices under 25 |
| J | Employees who can defer National Insurance because they’re already paying it in another job |
| M | Employees under 21 |
What are the new National Insurance bands and allowances?
New National Insurance bands and allowances are usually announced in the Chancellor of the Exchequer’s Budget or Autumn Statement. 1. Class 1 National Insurance thresholds Employers and employees pay Class 1 National Insurance depending on how much the employee earns.
Can I view national insurance rates and thresholds for previous years?
Historical and future rates. You can view National Insurance rates and thresholds for previous tax years. There will be new National Insurance rates and thresholds from 6 April 2019.
What is a Class 1 National Insurance threshold?
Class 1 National Insurance thresholds Employers and employees pay Class 1 National Insurance depending on how much the employee earns. You can view these earnings thresholds by week (table 1.1) or by month (table 1.2).