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Class 1 National Insurance

Class 1 National Insurance is the amount of National Insurance (NI) that you pay if you’re employed.

You only start paying Class 1 NI once you earn over £9,516 a year.

It’s 12% of your salary after this amount, and it drops to 2% once you earn over £50,000 a year.

What you need to remember about Class 1 National Insurance:

  • you don’t need to pay this yourself – your employer will automatically take it out of your salary every month via PAYE
  • on top of Class 1 NI, there is a separate contribution that employers pay, called Class 1A or Class 1B – this doesn’t come out of your salary, it’s entirely your employer’s responsibility
  • your employer will deduct Class 1 NI even if you earn under the Personal Allowance
  • if you’re also self-employed, you’ll pay both Class 1 NI and Class 2 (and maybe even Class 4) NI – you can use this employed and self-employed calculator to see what kind and how much NI you pay.

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