The below is guidance published by HMRC here and should always be referred back to in case of changes within the tax year.
The following rates apply from 6th April 2023 until 5th April 2024 unless stated otherwise.
Class 1 National Insurance Thresholds
National Insurance deductions are only made on earnings above the lower earnings limit.
Class 1 National Insurance thresholds | 2023 to 2024 |
|---|---|
Lower earnings limit | £123 per week £533 per month £6,396 per year |
Primary threshold | £242 per week £1,048 per month £12,570 per year |
Secondary threshold | £175 per week £758 per month £9,100 per year |
Freeport upper secondary threshold | £481 per week £2,083 per month £25,000 per year |
Upper secondary threshold (under 21) | £967 per week £4,189 per month £50,270 per year |
Apprentice upper secondary threshold (apprentice under 25) | £967 per week £4,189 per month £50,270 per year |
Veterans upper secondary threshold | £967 per week £4,189 per month £50,270 per year |
Upper earnings limit | £967 per week £4,189 per month £50,270 per year |
Class 1 National Insurance Rates
Employee (primary) contribution rates
National Insurance category letter | Earnings at or above lower earnings limit up to and including primary threshold | Earnings above primary threshold up to and including upper earnings limit | Balance of earnings above upper earnings limit |
|---|---|---|---|
A | 0% | 12% | 2% |
B | 0% | 5.85% | 2% |
C | nil | nil | nil |
F (Freeport) | 0% | 12% | 2% |
H (apprentice under 25) | 0% | 12% | 2% |
I (Freeport — married women and widows reduced rate) | 0% | 5.85% | 2% |
J | 0% | 2% | 2% |
L (Freeport — deferment) | 0% | 2% | 2% |
M (under 21) | 0% | 12% | 2% |
S (Freeport — state pensioner) | nil | nil | nil |
V (veteran) | 0% | 12% | 2% |
Z (under 21 — deferment) | 0% | 2% | 2% |
Employer (secondary) contribution rates
National Insurance category letter | Earnings at or above lower earnings limit up to and including secondary threshold | Earnings above secondary threshold up to and including Freeport upper secondary threshold | Earnings above Freeport upper secondary threshold up to and including upper earnings limit, upper secondary thresholds for under 21s, apprentices and veterans | Balance of earnings above upper earnings limit, upper secondary thresholds for under 21s, apprentices and veterans |
|---|---|---|---|---|
A | 0% | 13.8% | 13.8% | 13.8% |
B | 0% | 13.8% | 13.8% | 13.8% |
C | 0% | 13.8% | 13.8% | 13.8% |
F (Freeport) | 0% | 0% | 13.8% | 13.8% |
H (apprentice under 25) | 0% | 0% | 0% | 13.8% |
I (Freeport — married women and widows reduced rate) | 0% | 0% | 13.8% | 13.8% |
J | 0% | 13.8% | 13.8% | 13.8% |
L (Freeport — deferment) | 0% | 0% | 13.8% | 13.8% |
M (under 21) | 0% | 0% | 0% | 13.8% |
S (Freeport — state pensioner) | 0% | 0% | 13.8% | 13.8% |
V (veteran) | 0% | 0% | 0% | 13.8% |
Z (under 21 — deferment) | 0% | 0% | 0% | 13.8% |
Class 1A National Insurance: expenses and benefits
The National Insurance Class 1A rate on expenses and benefits for 2023 to 2024 is 13.8%.
More information about expenses and benefits.
Class 1A National Insurance: termination awards and sporting testimonial payments
The National Insurance Class 1A rate on termination awards and sporting testimonial payments for 2023 to 2024 is 13.8%. More information on termination awards.
More information on sporting testimonals.
Pay employers’ Class 1A National Insurance.
Class 1B National Insurance: PAYE Settlement Agreements (PSAs)
The National Insurance Class 1B rate for 2023 to 2024 is 13.8%. More information on PAYE Settlement Agreement.