Budget 2021: National Insurance and Minimum Wage

Following Budget 2021 we have summarised the National Insurance and Minimum Wage rates for 2021/22.

National Insurance – 2021/22 Class 1 (employed) rates

 

Employee

 

Earnings per week

 

%

Up to £184

0

£184.01 – £967

12

Over £967

2

 

Employer

 

Earnings per week

 

%

Up to £170

0

Over £170

13.8

 

Entitlement to contribution-based benefits for employees retained for earnings between £120 and £184 per week. The employer rate is 0% for employees under 21 and apprentices under 25 on earnings up to £967 per week.

 

Class 1A (employers) On employee taxable benefits 13.8%
Class 1B (employers) On PAYE Settlement Agreements 13.8%
 

Class 2 (self-employed)

 

Flat rate per week

Small profits threshold

 

£3.05

£6,515 per annum

Class 3 (voluntary) Flat rate per week £15.40
 

Class 4 (self-employed)

 

On profits between £9,568 – £50,270

Excess over £50,270

 

9%

2%

Minimum Wage

 

Age

 

NLW

 

21 – 22

 

18 – 20

 

16 and 17

 

Apprentices

From 1 April 2021 £8.91 £8.36 £6.56 £4.62 £4.30
 

The adult rate has been lowered to apply to those over 23 years (from aged 25). Apprentice rates apply to those under 19, or 19 or over and in the first year of their apprenticeship.

How can we help?

If you need assistance or advice related to any of the measures announced as part of Budget 2021, please contact us to arrange an initial discussion.

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