UK: National Insurance Rates & Thresholds for 2022/23
by activpayroll
The 2023/24 National Insurance (NI) rates have been confirmed by HMRC. The following UK National Insurance (NI) rates will apply from Thursday 6th April 2023 to Friday 5th April 2024
UK National Insurance Rates & Thresholds for 2023/24
The following 2023/24 UK National Insurance (NI) rates will apply from Thursday 6th April 2023 to Friday 5th April 2024. The tables in this article show both the Class 1 national insurance thresholds and employee and employer contribution rates for 2023/24.
Class 1 National Insurance Thresholds 2023/24
The following table outlines the Class 1 national insurance thresholds for 2023/24:
|
|
LEL |
PT |
ST |
FUST |
UEL/UST/VUST/AUST |
|---|---|---|---|---|---|
| Weekly |
£123 |
£242 |
£175 |
£481 |
£967 |
| Monthly |
£533 |
£1048 |
£758 |
£2083 |
£4189 |
| Yearly |
£6396 |
£12570 |
£9100 |
£25000 |
£50270 |
LEL – Lower Earnings Limit
PT – Primary Threshold
ST – Secondary Threshold
FUST – Freeport Upper Threshold
UEL – Upper Earnings Limit
UST – Upper Secondary Threshold
AUST – Apprentice Upper Secondary Threshold
VUST – Veterans Upper Secondary Threshold
2023/24 National Insurance Rates - Employee Contributions
Employee contributions are calculated based on national insurance threshold and category letter. A full breakdown of category letters can be found directly below the table:
| LETTER |
EARNING AT OR ABOVE LEL UP TO AND INCLUDING PT |
EARNINGS ABOVE PT UP TO AND INCLUDING UEL |
BALANCE OF EARNINGS ABOVE UEL |
|---|---|---|---|
| A |
0% |
12% |
2% |
| B |
0% |
5.85% |
2% |
| C |
NIL |
NIL |
NIL |
| F |
0% |
12% |
2% |
| H |
0% |
12% |
2% |
| I |
0% |
5.85% |
2% |
| J |
0% |
2% |
2% |
| L |
0% |
2% |
2% |
| M |
0% |
12% |
2% |
| S |
NIL |
NIL |
NIL |
| V |
0% |
12% |
2% |
| Z |
0% |
2% |
2% |
A – All not covered by another category
B – Married women and widows entitled to pay reduced NI
C – Employees over state pension age
F – Freeport standard
H – Apprentice under 25
I – Freeport married women and widows reduced rate election (MWRRE)
J – Deferment
L – Freeport deferment
M – Under 21
S – Freeport over state pension age
V – Veterans standard
Z – Under 21 deferment
2023/24 National Insurance Rates - Employer Contributions
Employer contributions are also determined by the employee’s national insurance threshold and category letter. The following table follows the same category letters outlined above:
| LETTER |
EARNINGS AT OR ABOVE LEL UP TO AND INCLUDING ST |
EARNINGS ABOVE ST UP TO AND INCLUDING FUST |
EARNINGS ABOVE FUST UP TO AND INCLUDING UEL/UST/VUST/AUST |
BALANCE OF EARNINGS ABOVE UEL/UST/VUST/AUST |
|---|---|---|---|---|
| A |
0% |
13.8% |
13.8% |
13.8% |
| B |
0% |
13.8% |
13.8% |
13.8% |
| C |
0% |
13.8% |
13.8% |
13.8% |
| F |
0% |
0% |
13.8% |
13.8% |
| H |
0% |
0% |
0% |
13.8% |
| I |
0% |
0% |
13.8% |
13.8% |
| J |
0% |
13.8% |
13.8% |
13.8% |
| L |
0% |
0% |
13.8% |
13.8% |
| M |
0% |
0% |
0% |
13.8% |
| S |
0% |
0% |
13.8% |
13.8% |
| V |
0% |
0% |
0% |
13.8% |
| Z |
0% |
0% |
0% |
13.8% |
Paying Class 1 National Insurance
Class 1 national insurance contributions are paid via the HMRC’s PAYE system. Your payroll software or provider will be able to take care of the entire submission process, as well as determining individual contributions for each employee.
Interested in doing business in the United Kingdom? Find out everything you need to know about payroll, tax, social security, employee benefits, work permits, employment law and more in activpayroll’s Guide to Doing Business in the UK. This is available as a free PDF to download.