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Class 1 National Insurance (NI) is a tax that you pay when you’re employed. There are multiple types of National Insurance that we’re liable to pay in the UK, depending on our employment status.
Take a look at the different types below:
|Class of National Insurance||Who pays?||How do you pay?|
|Class 1||Employees who are under state pension age and earning >£190 per week||Automatically deducted by your employer from your salary – entitles you to claim JSA|
|Class 1A/1B||Employers||Deducted from employees’ benefits and expenses|
|Class 2||Self-employed earning >£6,725 per year||Paid via a tax return|
|Class 3||Anyone||Paid in voluntary contributions to clear any gaps in your NI|
|Class 4||Self-employed earning >£9,880 per year||Paid via a tax return|
It’s 13.25% of your salary after you start earning £190 per year. This amount then drops to 3.25% once you earn over £50,270 a year.
Earning over £50,270 makes you a Higher Rate earner.
It’s worth noting that following the 2022 Spring Statement, the NI thresholds for Class 1 and Class 4 contributions are increasing to match the Personal Allowance at £12,570. This change will take place in July 2022, which means that you won’t need to pay any NI for Class 1 and 4 for earnings less than £12,570.
To calculate the National Insurance that you’re liable to pay, take a look at our employed and self-employed calculator.
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