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Finance Division

 

NI Thresholds

Class 1 NICs Thresholds

Figures to use 2016-17

Lower earnings limit (LEL)

£113 per week

£490 per month

£5,876 per year

Primary Threshold (PT)

£157 per week

£680 per month

£8,164 per year

Secondary Threshold (ST)

£157 per week

£680 per month

£8,164 per year

Upper Earnings Limit (UEL)

£866 per week

£3,750 per month

£45,000 per year

Rates for employees

NICs category letter

Earnings at or above LEL up to and including PT

Earnings above the PT up to and including UEL

Balance of earnings above UEL

A

0%

12%

2%

H (apprentice under 25)

0%

12%

2%

M (under 21)

0%

12%

2%

Employees Over State Pension Age

Currently, the State Pension age is 65 for men. For women born on or before 5 April 1950, State Pension age is 60. The State Pension age for women born between 6 April 1950 and 5 November 1953 will increase gradually to 65 between now and 2018. From November 2018 the State Pension age will be 65 for both men and women.

Before we can stop deducting employee NICs, we must have seen proof of your age. This proof can be a:

  • birth certificate
  • passport

National Insurance Numbers

What is a National Insurance Number?

Your National Insurance number is your own personal account number and is issued automatically to all UK Nationals at the age of 16. The number makes sure that the National Insurance contributions and tax you pay are properly recorded on your account. It also acts as a reference number for the whole social security system. You usually receive a National Insurance card with the number on it, which acts as a handy reminder.

Every National Insurance number is different. It's made up of letters and numbers like this:

QQ 12 34 56 A. (Please note that this National Insurance number is just an example and should not be used as your own number).

Your National Insurance number never changes even if you go abroad, marry, register as a civil partner, change your name, etc.

Non UK Nationals who have the right to work in the UK will have to apply for a number if intending to work. An appointment must be made at the local Department for Work and Pensions (DWP):

Jobcentre Plus, Henry Giles House, 73-79 Chesterton Road, Cambridge, CB4 3AP

Telephone: 03456 043719

When you get a National Insurance number, you'll normally get a plastic National Insurance number card too. This may take up to 12 weeks from when you applied for your National Insurance number. Once you have received this please inform the Payroll Section, so your record can be updated.

Further information regarding National Insurance numbers and the application process can be found at the DirectGov website.

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