HFMC Wealth Budget Summary 2020

16 BUDGET l 11 March 2020 NATIONAL INSURANCE CONTRIBUTIONS Class 1 employee Employee 2020/21 Employer Employee 2019/20 Employer NIC rate 12% 13.8% 12% 13.8% No NICs for younger employees 1 on the first £183 pw £962 pw £166 pw £962 pw No NICs for employees generally on the first £183 pw £169 pw £166 pw £166 pw NICs rate charged up to £962 pw No limit £962 pw No limit 2% NICs on earnings over £962 pw N/A £962 pw N/A 1. Employees generally under 21 years and apprentices under 25 years. Employment allowance 2020/21 2019/20 Per business £4,000 £3,000 Not available if the sole employee is a director. Earnings limits and thresholds Weekly 2020/21 Annual Weekly 2019/20 Annual Lower earnings limit £120 £6,240 £118 £6,136 Primary threshold £183 £9,500 £166 £8,632 Secondary threshold £169 £8,788 £166 £8,632 Upper earnings limit (and upper secondary thresholds 2 ) £962 £50,000 £962 £50,000 2. Employees generally under 21 years and apprentices under 25 years. Class 1A (Employers) 2020/21 2019/20 Most taxable employee benefits 13.8% 13.8% Class 2 (Self-Employed) 2020/21 2019/20 Flat rate £3.05 pw £158.60 pa £3.00 pw £156.00 pa Small profits threshold: No NICs if profits do not exceed £6,475 pa £6,365 pa Class 4 (Self-Employed) 2020/21 2019/20 On profits £9,500–£50,000 pa 9% £8,632–£50,000 pa 9% Over £50,000 pa 2% Over £50,000 pa 2% Voluntary 2020/21 2019/20 Class 3 flat rate £15.30 pw £795.60 pa £15.00 pw £780.00 pa