National insurance contributions

National insurance contributions and rates in 2013/14

Class 1 (not contracted out)	Employer	Employee
Lower earnings limit		£109
Payable on weekly earnings
£109.01-£148	n/a	0%
£148.01 - £149	13.8%	0%
£149.01 - £797	13.8%	12%
Over £797	13.8%	2%
Payable on monthly earnings
£473.91 - £641	n/a	0%
£641.01 - £646	13.8%	0%
£646.01 - £3,337	13.8%	12%
Over £3,337	13.8%	2%
Over state retirement age	13.8%	n/a
Class 1A (on relevant benefits)	13.8%	n/a
Class 1B (on PAYE settlement arrangement)	13.8%
Class 2 (self employed)	£2.70 per week
Class 2 contributions - share fishermen	£3.35 per week
Class 2 contributions - volunteer development workers	£5.45 per week
Limit of net earnings for exception	£5,725 per annum
Contributions cease at state retirement age
Class 3 (voluntary)	£13.55 per week
Class 4* (Self employed on profits)
£7,755 to £41,450	9%
Excess over £41,450	2%
*Exemption applies if state retirement age was reached by 6 April 2013.
Maximum contributions
Class 1	£4,121.28 + 2% of earnings over £41,450 pa.
Class 2 and Class 4	£3,032.55 + 2% of profits over £41,450 pa.

Notes

1. For children under 16, and employees over state pension age there are no national insurance contributions payable, but employers' contributions remain payable.

Did you know?

That the Treasury is expecting to raise £106.7 billion (2012/13 £103.8 billion) from national insurance contributions. In the current year this represents almost 80 per cent of the receipts from PAYE.