Question 1

What are the employee National Insurance rates for 2024/25?

Accepted Answer

For the 2024/25 tax year, employees pay Class 1 National Insurance contributions (NICs) on their earnings. The rates were reduced in January 2024 and again in April 2024.

Employee Class 1 NIC rates for 2024/25:

Earnings Band  Weekly  Annual  Rate

Below Primary Threshold  Up to £242/week  Up to £12,570/year  0% 
 Primary Threshold to Upper Earnings Limit  £242 to £967/week  £12,570 to £50,270/year  8% 
 Above Upper Earnings Limit  Over £967/week  Over £50,270/year  2%

Key points:

You st

Question 2

How much National Insurance do self-employed people pay (Class 2 and Class 4)?

Accepted Answer

If you are selfemployed in the UK, you may need to pay two types of National Insurance: Class 2 and Class 4. For the 2024/25 tax year, the rules have changed significantly.

Class 2 NICs (2024/25):

From 6 April 2024, selfemployed people with profits above £6,725 no longer need to pay Class 2 NICs. However, you will still be treated as having paid them, so your State Pension entitlement is protected. The Class 2 rate was £3.45 per week, but this is no longer mandatory.

If your profits are below

Question 3

Can I pay voluntary National Insurance contributions to fill gaps in my record?

Accepted Answer

Yes, you can pay voluntary National Insurance contributions to fill gaps in your NI record. This is important because gaps can reduce your State Pension entitlement.

Why fill gaps?

You need 35 qualifying years of National Insurance to receive the full new State Pension (currently £221.20 per week for 2024/25). If you have gaps, for example from years when you were not working, living abroad, or earning below the threshold, your State Pension will be lower.

Types of voluntary contributions:

Question 4

How many years of National Insurance do I need for a full State Pension?

Accepted Answer

You need 35 qualifying years of National Insurance contributions to receive the full new State Pension. For the 2024/25 tax year, the full new State Pension is £221.20 per week (approximately £11,502 per year).

Minimum qualifying years:

You need at least 10 qualifying years to get any State Pension at all. If you have between 10 and 35 years, your pension is calculated proportionally. For example, 20 qualifying years would give you 20/35ths of the full amount.

What counts as a qualifying year

Categories

National Insurance

What are the employee National Insurance rates for 2024/25?

How much National Insurance do self-employed people pay (Class 2 and Class 4)?

Can I pay voluntary National Insurance contributions to fill gaps in my record?

How many years of National Insurance do I need for a full State Pension?