National Insurance Employee Primary Contributions
From 6th April 2019 to 5th April 2020
National Insurance Primary Contributions are deductions suffered by the employee when they reach a certain level of gross pay
The percentage deductible depends on the employee’s gross earnings, their age, their employment status and the national insurance letter allocated to the employee by HMRC.
The most common letters used to calculate national insurance are A, C, J and M
|Earnings at or above LEL up to and including the PT||0||0||0||0||0|
|Earnings above PT up to and including the UEL||12||0||12||2||12|
|Balance of earnings above the UEL||2||0||2||2||2|
LEL (lower earnings threshold) £118 per week
PT (primary threshold) £166 per week
UEL (upper earnings limit) £962 per week
It is beneficial for the employee to earn between £118 (LEL) and £165 (PT) a week
Earning between the (LEL) and the (PT) allows the employee to gain a credit towards their national insurance stamp and makes them eligible for most statutory payments such as statutory sick pay. Gross earnings between these two thresholds are not subject to national insurance for either the employee or the employer.
National Insurance deductions should NOT be made on earnings below the lower earnings limit