National Insurance rates for businesses and employees in 2019

ESB Accountancy lists the National Insurance rates for businesses and employees in 2019

ESB Accountancy lists the National Insurance rates for businesses and employees in 2019

National Insurance contributions

For 2019/20 the lower earnings limit for Class 1 National Insurance purposes is increased to £118 per week, the primary and secondary thresholds are increased to £166 per week and the upper earnings limit is increased to £962 per week.

The secondary threshold for under 21s and the apprentice upper secondary threshold, which are aligned with the upper earnings limit, also rise to £962 per week.

The main rate of employee Class 1 National Insurance contributions, payable on earnings between the primary threshold and the upper earnings limit, remains at 12% and the additional primary rate, payable on earnings in excess of the upper earnings limit, remains at 2%.

The employer rate, payable on earnings above the relevant secondary threshold, remains at 13.8%, as does the Class 1A and Class 1B rate.

The employment allowance also remains at £3,000 for 2019/20.

The self-employed will continue to pay Class 2 and Class 4 contributions for 2019/20. Class 2 contributions are payable at a rate of £3 per week for 2019/20 where earnings exceed the small profits threshold, which is set at £6,365 for 2019/20.

Class 4 contributions are payable at the main rate of 9% on profits between the lower profits limit, set at £8,632 for 2019/20, and the upper profits limit, set at £50,000 for 2019/20, and at the rate of 2% on profits in excess of the upper profits limit.

The rate of voluntary Class 3 National Insurance contributions is set at £15 per week for 2019/20.

Please talk to us at ESB Accountancy to discuss how your business can comply with the new laws – with several decades of financial experience here in Gloucestershire you can either ring us now on – email us on edith@esbaccountancy.co.uk or click the Contact Us buttonpayroll bookkeeping services small business help contact esb accountancy gloucestershire cheltenhamor please fill the form at the bottom of the contact us page.

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