Back
Let us sort your Self Assessment online. £119, all in. Learn more

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 £8,632 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.

Hey there! We really hope this article helped you. Tax matters can be a dreadful topic at times. We know. That's why we started TaxScouts.
A stress-free way to getting your taxes done.

Have a minute? See how it works

More guides & useful information

Related terms

Let us sort your Self Assessment online. £119, all in.

That’s right. No matter how complicated it gets or why you need to do a return in the first place, it’ll cost £119 to get it done. That includes VAT, last-minute changes and all the support you may need.

How it works

1. Answer a few simple questions

And we mean a few. After a couple of minutes of answering questions online we’ll have everything we need to start working on your tax return.

2. Then get paired with a tax accountant

That’s right, you’ll be matched with a real accountant who is best suited to prepare your return. Plus, they’re on hand for questions whenever you need.

3. We file your Self Assessment for you

Once you’ve signed off your return, your TaxScouts accountant will file your return online with HMRC. That’s it! We told you it was simple.