National insurance

Class 1

Employees start paying Class 1 NIC from age 16 (if sufficient earnings).

Employers pay Class 1 NIC in accordance with the table below.

Employer NIC for employees under the age of 21 and apprentices under the age of 25 is reduced from the normal rate to 0% up to the Upper Secondary Threshold of £967 per week. Also applies to veterans in the first 12 months of employment.

Employees Class 1 NIC stop when they reach their 'State Pension age'. The employer's contribution continues.

Employees

2023/24:

Earnings per week %
Up to £242 Nil
£242.01 - £967 12 up to 5 Jan 2024
10 from 6 Jan 2024
Over £967 2

Entitlement to state pension and other 'contribution-based benefits' is retained for earnings between £123 and £242 per week.

2022/23:

Earnings per week % (from 6/11/22) % (to 5/11/22)
Up to £242 1 Nil Nil
£242.01 - £967 12 13.25
Over £967 2 3.25
  1. £190 until 5 July 2022

Entitlement to state pension and other 'contribution-based benefits' is retained for earnings between £123 and £190 per week.

Employers

2023/24:

Earnings per week %
Up to £175 Nil
Over £175 13.80

2022/23:

Earnings per week % (from 6/11/22) % (to 5/11/22)
Up to £175 Nil Nil
Over £175 13.80 15.05

Other National Insurance payable by employers

Class 1A

13.8% on broadly all taxable benefits provided to employees and on certain taxable termination and sporting testimonial payments in excess of £30,000.

Class 1B

13.8% on taxable PAYE Settlement Agreements.

Class 2 and 4 (self-employed)

A self-employed person starts paying Class 2 and Class 4 NIC from 16 or over (if sufficient profits).

Class 2 NIC stop when a person reaches State Pension age.

Class 4 NIC stop from the start of the tax year after the one in which the person reaches State Pension age.

2023/24:

Class 2 (£)
Flat rate per week 3.45
Small Profits Threshold (per year) 6,725
Lower Profits Limit 12,570

For 2023/24 the point at which the self-employed person starts to pay Class 2 NICs is £12,570. This means those with profits between the Small Profits Threshold and the Lower Profits Limit will not pay Class 2 NICs, but will still be able to access entitlement to contributory benefits. A self-employed person with profits below the Small Profits Threshold might decide to carry on paying Class 2 voluntarily to accrue entitlement to the State Pension and other benefits.

2022/23:

Class 2 (£)
Flat rate per week 3.15
Small Profits Threshold (per year) 6,725
Lower Profits Limit 11,908

Class 4

2023/24:

Annual profits %
Up to £12,570 Nil
£12,570.01 - £50,270 9
Over £50,270 2

2022/23:

Annual profits %
Up to £11,908 Nil
£11,908.01 - £50,270 9.73
Over £50,270 2.73

Class 3

A person needs 35 years (30 years if State Pension age is before 6 April 2016) of NIC to get a full State Pension.

Class 3 voluntary contributions can be paid to fill or avoid gaps in a NI record.

Flat rate per week: £17.45 (2022/23: £15.85)

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Company registered in England & Wales, number 06137832
The ICAEW audit registration number for Honey Barrett (Audit) Ltd is C005419803.
VAT No. 725 2398 29


The firm’s professional indemnity insurers are Accelerant Insurance Europe SA is a company registered in Belgium (Company number 0758.632.842) with registered office at Bastion Tower, Level 20, Place du Champ de Mars 5, 1050 Brussels.
Accelerant Insurance Europe SA is an insurance company authorised by the National Bank of Belgium and regulated by the Financial Services and Markets Authority (FSMA) (Ref. 3193).

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The Registered office is: Honey Barrett Limited, 53 Gildredge Road, Eastbourne, East Sussex BN21 4SF

Honey Barrett Limited, 53 Gildredge Road, Eastbourne, East Sussex BN21 4SF
Bexhill Office : 48 St Leonards Road, Bexhill-on-Sea, East Sussex TN40 1JB
Wadhurst Office : Pharmacy Chambers, High Street, Wadhurst, East Sussex TN5 6AP