PMW Budget Summary 2021

16 BUDGET l 3 March 2021 NATIONAL INSURANCE CONTRIBUTIONS Class 1 Employees Employee 2021/22 Employer Employee 2020/21 Employer NICs rate 12% 13.8% 12% 13.8% No NICs for employees generally on the first £184 pw £170 pw £183 pw £169 pw No NICs for younger employees/veterans 1 on the first £184 pw £967 pw £183 pw £962 pw NICs rate charged up to £967 pw No limit £962 pw No limit 2% NICs on earnings over £967 pw N/A £962 pw N/A 1. Employees generally under 21 years, apprentices under 25 years. Veterans in first 12 months of civilian employment from April 2021. Employment allowance 2021/22 2020/21 Per business £4,000 £4,000 Not available if the sole employee is a director or employer’s NIC for previous year £100,000 or more. Earnings limits and thresholds Weekly 2021/22 Annual Weekly 2020/21 Annual Lower earnings limit £120 £6,240 £120 £6,240 Primary threshold £184 £9,568 £183 £9,500 Secondary threshold £170 £8,840 £169 £8,788 Upper earnings limit (and upper secondary thresholds 2 ) £967 £50,270 £962 £50,000 2. Employees generally under 21 years, apprentices under 25 years. Veterans in first 12 months of civilian employment from April 2021. Class 1A Employers 2021/22 2020/21 Most taxable employee benefits 13.8% 13.8% Class 2 Self-employed 2021/22 2020/21 Flat rate £3.05 pw £158.60 pa £3.05 pw £158.60 pa Small profits threshold: No compulsory NICs if profits do not exceed £6,515 pa £6,475 pa Class 4 Self-employed 2021/22 2020/21 On profits £9,568–£50,270 pa 9% £9,500–£50,000 pa 9% Over £50,270 pa 2% Over £50,000 pa 2% Voluntary 2021/22 2020/21 Class 3 flat rate £15.40 pw £800.80 pa £15.30 pw £795.60 pa