Spring Statement 2023: NI Contributions


Class 1

 Employee – PrimaryEmployer – Secondary
NICs rate12%13.8%
No NICs for employees generally on the first£242 pw£175 pw
No NICs for younger employees1 on the first£242 pw£967 pw
NICs rate charged up to£967 pwNo limit
2% NICs on earnings over£967 pwN/A

1 No employer NICs on the first £967pw for employees generally under 21 years, apprentices under 25 years and veterans in first 12 months of civilian employment. No employer NICs on the first £481pw for employees at freeports in Great Britain in the first three years of employment starting from 6 April 2022.

Employment allowance

Per business                                                                                                           £5,000

Not available if the sole employee is a director or employer’s NICs for 2022/23 are £100,000 or more. 

Earnings limits and thresholds

Limits and thresholdsWeeklyMonthlyAnnual
Lower earnings limit£123£533£6,396
Primary threshold£242£1,048£12,570
Secondary threshold£175£758£9,100
Upper earnings limit (and upper secondary thresholds for younger/veteran employees and apprentices under 25)£967£4,189£50,270

Class 1A Employer

On car and fuel benefits and most other taxable benefits provided
to employees and directors                                                                                    13.8%

Class 2 Self-employed

Flat rate£3.45 pw£179.40 pa
Small profits threshold £6,725 pa
Lower profits limit £12,570 pa

Class 4 Self-employed

On annual profits of£12,570 – £50,2709%
 Over £50,2702%


Class 3 flat rate£17.45 pw£907.40 pa

You can also read our highlights of Spring Budget 2023 Summary or download a free copy of ammu’s 2023-24 Tax Tables

Get in touch

If you would like to discuss your tax matters with our expert email Emily Wilson at info@ammu.uk or call 01292 388 031