UK National Insurance Calculator 2024-25

💼 What is National Insurance?

National Insurance is a system of contributions paid by workers and employers in the UK. It funds the state pension, NHS, unemployment benefits, and other social security benefits.

👔 Class 1 (Employees)

• Paid by employees and employers on earnings above thresholds
• Employee pays 8% between £12,570 and £50,270, then 2% above
• Employer pays 13.8% on earnings above £9,100
• Deducted automatically through PAYE

💼 Class 2 & 4 (Self-Employed)

• Class 2: Voluntary flat rate of £3.45 per week (mandatory abolished from April 2024 for profits > £12,570, but credit given)
• Class 4: 6% on profits between £12,570 and £50,270, then 2% above
• Paid through Self Assessment tax return
• Class 2 provided access to certain benefits

🏢 Employer Responsibilities

• Must pay employer NI on employee earnings above £9,100
• Can claim Employment Allowance up to £5,000 per year
• Different rates may apply for apprentices and under-21s
• Must register for PAYE if paying above thresholds

💡 Important Notes

• NI contributions count towards state pension and benefits
• Different rules apply to company directors
• Salary sacrifice can reduce NI liability
• Some benefits in kind are subject to Class 1A NI