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Class 1 National Insurance (NI) is a tax that you pay when you’re employed. There are multiple types of National Insurance that we’re liable to pay in the UK, depending on our employment status.
Take a look at the different types below:
| Class of National Insurance | Who pays? | How do you pay? |
| Class 1 | Employees who are under state pension age and earning >£242 per week | Automatically deducted by your employer from your salary – entitles you to claim JSA |
| Class 1A/1B | Employers | Deducted from employees’ benefits and expenses |
| Class 2 (scrapped from 6 April 2024) | Self-employed earning >£6,725 per year | Paid via a tax return |
| Class 3 | Anyone | Paid in voluntary contributions to clear any gaps in your NI |
| Class 4 | Self-employed earning >£12,570 per year | Paid via a tax return |
How does it work?
It’s 10% of your salary after you start earning £242 per year. This amount then drops to 2% once you earn over £50,270 a year. Earning over £50,270 makes you a Higher Rate earner.
Main Points To Remember
- 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 National Insurance, there is a separate contribution that employers pay: Class 1A or Class 1B
- Class 1A/1B don’t come out of your salary, they are your employer’s responsibility
- Your employer will deduct Class 1 National Insurance even if you earn under the Personal Allowance
- If you’re both employed and self-employed (e.g. you have a side gig), you’ll pay both Class 1 NI and Class 2 (and potentially even Class 4) National Insurance
Frequently Asked Questions
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I’m self-employed, how do I pay my National Insurance?
I you’re self-employed, you aren’t in the Class 1 bracket for National Insurance, you need Class 4 and would pay your National Insurance via your tax return. Read our handy guide here.
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I need to file my tax return, can you help?
Of course we can! Get in touch with our helpful experts today for comprehensive advice and support with completing your self-assessment tax return.
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