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  1. What is National Insurance? National Insurance is a tax on earnings that is paid by both employees (from their wages) and by employers (on top of the wages they pay out), as well as by the self-employed (from their trading profits).

    • Employee National Insurance rates
    • Employer National Insurance rates
    • Class 1A and Class 1B rates

    Example

    If you’re in category A and you earn £1,000 in a week you’ll pay: nothing on the first £242 10% (£72.50) on your earnings between £242.01 and £967 2% (£0.66) on the remaining earnings above £967 This means your National Insurance payment will be £73.16 for the week.

    This table shows how much employers pay towards employees’ National Insurance from 6 April 2023 to 5 April 2024.

    HM Revenue and Customs (HMRC) has full rates and thresholds for tax years:

    •2023 to 2024

    •2022 to 2023

    •2021 to 2022

    •2020 to 2021

    Employers pay Class 1A and 1B National Insurance on expenses and benefits they give to their employees. The rate from 6 April 2023 to 5 April 2024 on expenses and benefits is 13.8%.

    They must also pay Class 1A on some other lump sum payments, for example redundancy payments. HMRC has detailed guidance on all Class 1A and Class 1B rates.

  2. Payment of NICs qualifies individuals to receive certain social security benefits (most notably the state pension). In practice, however, the link between contributions paid and benefits received is vanishingly weak and NICs essentially act as a second income tax.

  3. Feb 20, 2021 · Employers have to deduct both their employees' national insurance and pay it to HMRC on their behalf, as well as pay Class 1A National Insurance Contributions (which are known as secondary National Insurance Contributions) on their employees' earnings.

  4. How much you pay. The amount of National Insurance you pay depends on your employment status and how much you earn. You can see rates for past tax years. If you’re employed. You pay Class 1...

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  6. Apr 5, 2024 · National Insurance is worked out in a similar way to income tax and is calculated on gross earnings (before tax or pension deductions) or profits (earnings minus allowable expenses) above a threshold.