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National Insurance Rates 2020/21
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Where Taxpayers and Advisers Meet
National Insurance Rates 2020/21
10/02/2020, by Lee Sharpe, Tax News - PAYE and Payroll Taxes, National Insurance, NICs
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The government has published draft NIC Regulations covering the proposed rates of National Insurance Contributions for 2020/21. For many years, these have been trailed in the Autumn Statement but the repeated postponement of the Autumn Budget/Statement means that they have only just been published.

Class I



Lower Earnings Limit

£120 per week
£520 per month
£6,240 per year

£118 per week
£512 per month
£6,136 per year

Primary Threshold

£183 per week
£792 per month
£9,500 per year

£166 per week
£719 per month
£8,632 per year

Secondary (Employers) Threshold

£169 per week
£732 per month
£8,788 per year

£166 per week
£719 per month
£8,632 per year

Upper Earnings Limit

£962 per week
£4,167 per month
£50,000 per year

£962 per week
£4,167 per month
£50,000 per year

Class II

£3.05 per week

£3.00 per week

Small Profits Threshold

£6,475 per year

£6,365 per year

Class III (voluntary)

£15.30 per week

£15.00 per week

Class IV



Lower Profits Limit

£9,500 per year

£8,632 per year

Upper Profits Limit

£50,000 per year

£50,000 per year


Note that while the government's manifesto pledge aspiration to start raising the NIC threshold to £12,500 does appear to have materialised - both for employees and for the self-employed -

  • It seems that Employers' Secondary Contributions have remained rooted at a standard inflationary increase, marking another divergence in the alignment of the thresholds, and
  • The Upper Earnings/Profits Limit has stayed at £50,000; given that the rate decreases above these Limits, sticking at £50,0000 will - unusually - benefit the Contributor because he or she will pay at the higher (standard) rate for a narrower band.

About The Author

Lee is TaxationWeb's Articles & News Editor and writes for TaxationWeb. He is a Chartered Tax Adviser with experience of advising individuals and owner-managed businesses over a broad spectrum of tax matters.
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