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NI Thresholds

Class 1 NICs Thresholds Figures to use 2016-17
Lower earnings limit (LEL) £112 per week
£486 per month
£5,824 per year
Primary Threshold (PT) £155 per week
£672 per month
£8,060 per year
Secondary Threshold (ST) £156 per week
£676 per month
£8,112 per year
Upper Earnings Limit (UEL) £827 per week
£3,583 per month
£43,000 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
  • or preferably a certificate of exemption (form CA4140 pr CF384)

Forms CA4140 or CF384 can be applied for via:

HM Revenue & Customs
National Insurance Contributions Office
Benton Park View
Newcastle Upon Tyne
NE98 1ZZ

Telephone: 0845 302 1479
Open Monday to Friday 8am to 5pm

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 3YB

Telephone: 0845 6000 643

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.

HMRC Contact Details

HMRC Customer Service Desk Telephone Numbers:

Income Tax - 0300 200 3300
National Insurance - 0300 200 3500

PAYE Reference: 126/U100

Please note:

The Payroll section cannot make telephone calls to HMRC on your behalf. HMRC do not like to discuss employee information to a third party. Should you wish to contact HMRC, please have your NI number to hand.

 

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