5
Autumn Budget 2017
National insurance contributions (NICs) 2018/19
Employee (primary)
Employer (secondary)
Class 1 Payable on weekly earnings of:
Below £116 (lower earnings limit) £116 - £162 (primary threshold) Up to £162 (secondary threshold)
Nil
– –
*0%
– –
Nil
Above £162
13.8%
£162.01 - £892 (upper earnings limit)
**12%
–
£162.01 - £892 (under 21s and apprentices under 25)
–
0%
Above £892
**2%
–
*No NICs are actually payable but notional Class 1 NIC is deemed to have been paid; this protects contributory benefit entitlement. **Over State Pension age, the employee contribution is generally nil.
up to £3,000 (per year)
Employment Allowance
On relevant benefits
13.8%
Class 1A
Self-employed
£2.95 per week
Class 2
Small profits threshold
£6,205 per annum
Voluntary
£14.65 per week
Class 3
Self-employed on annual profits £8,424 - £46,350
Class 4
*9%
Excess over £46,350
*2%
*Exemption applies if State Pension age is reached by 6 April 2018.
In a change to the date originally announced, Class 2 NICs are set to be abolished from April 2019.
As previously announced, the government will no longer proceed with an increase to the main rate of Class 4 NICs from 9% to 10% in April 2018, and to 11% in April 2019.
National Minimum Wage and National Living Wage The government has aligned the National Minimum Wage and National Living Wage cycles so that any increases in rates now occur in April each year. The rates applying from 1 April 2018 are outlined below.
Apprentices*
16 and 17
18 - 20
21 - 24
25 and over
National Minimum Wage
£3.70
£4.20
£5.90
£7.38
-
National Living Wage
-
-
-
-
£7.83
*Under 19, or 19 or over and in the first year of their apprenticeship.
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