5
Autumn Budget 2018
National insurance contributions (NICs) 2019/20 Class 1 (employed) rates
Employee
Employer
%
%
Earnings per week
Earnings per week
Up to £166
0
Up to £166
0
£166.01 - £962
12
Over £166
13.8
Over £962
2
Entitlement to contribution-based benefits for employees retained for earnings between £118.01 and £166 per week. The employer rate is 0% for employees under 21 and apprentices under 25 on earnings up to £962 per week.
On employee taxable benefits
13.8%
Class 1A (employers)
On PAYE Settlement Agreements
13.8%
Class 1B (employers)
Flat rate per week
£3.00
Class 2 (self-employed)
Small profits threshold
£6,365 per annum
Flat rate per week
£15.00
Class 3 (voluntary)
On profits between £8,632 - £50,000
9%
Class 4 (self-employed)
Excess over £50,000
2%
In a change to the government’s previous plans, Class 2 NICs are no longer set to be abolished from April 2019.
National Minimum Wage and National Living Wage Increases in the National Minimum Wage and National Living Wage rates now occur in April each year. The rates applying from 1 April 2019 are outlined below.
Apprentices*
16 and 17
18 - 20
21 - 24
25 and over
National Minimum Wage
£3.90
£4.35
£6.15
£7.70
-
National Living Wage
-
-
-
-
£8.21
*Under 19, or 19 or over and in the first year of their apprenticeship.
“I have always said that these negotiations would be tough - and they were always bound to be toughest in the final straight” Prime Minister Theresa May
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