2024/2025 national insurance contributions
2022/23 National Insurance Contributions
Class 1 (Employees)
Employee
Employer
Main NIC rate
13.25%
15.05%
No NIC – up to 5 July- on first
£190pw
£175pw
No NIC – from 6 July – on first
£242pw
£175pw
Main rate* charged up to
£967pw
no limit
2% rate on earnings above
£967pw
N/A
Employment allowance per business
N/A
£5,000
*Nil rate of employer NIC for employees under the age of 21 and apprentices under 25, up to £967pw.
For directors the employee NIC threshold for 2022/23 is £11,908.
Employer contributions (at 15.05%) are also due on most taxable benefits (Class 1A) and on tax paid on an employee’s behalf under a PAYE settlement agreement (Class 1B).
There will be a new 1.25% Health and Social Care Levy for employees and employers from 2023/24.
Class 2 (Self employed)
2022/23
2021/22
Flat rate per week
£3.15
£3.05
Small profits threshold
£6,725
£6,515
Class 3 (Voluntary)
Flat rate per week
£15.85
£15.40
Class 3A
Contributions vary with age
Class 4 (Self employed)
On profits £11,908 – £50,270
10.25%
9%
(£9,570 - £50,270)
On profits over £50,270
3.25%
2%
* No class 2 contributions are due where profits fall between £6,725 and £12,570.
Our Core Services
Bookkeeping
Stressed out with paperwork? Let Butterworths Accountants take it off your hands. Simply drop off your invoices, bank statements and records, and we will take care of all the processing for you.
Making Tax Digital for Income Tax
From 6 April 2026, the major change under Making Tax Digital (MTD) for Income Tax Self-Assessment (MTD for ITSA) comes into effect in the UK. This is a significant update to how certain self-employed individuals and landlords report their income to HMRC.
Business start-up
Starting a business is a really exciting time, but we know it is also a very busy time. You will no doubt have your plans in place and the drive to succeed, but you may not be aware of all the financial aspects involved.
Accounting
Butterworths can help reduce the time you spend on admin work, letting you focus on what is really important to your business.
VAT
Value Added Tax (VAT) is a tax that must be paid when purchasing services or goods. At Butterworths we can help you through the whole VAT process, including:
Payroll
Worried about a PAYE inspection? Butterworths Accountants’ PAYE Healthcheck service is designed to identify PAYE issues before HMRC does.
Tax
Need help with your tax return or want to pay less tax? Butterworths Accountants provide personal tax services for both business owners and private individuals.