National Insurance contributions (NICs)
Amounts payable to HM Revenue & Customs ( www.practicallaw.com/6-200-6399) by employees, their employers, and by self-employed workers. The amount of NIC payable by any person is determined by multiplying the relevant earnings, benefits or profits of the employee or self-employed person by the relevant percentage. (The self-employed also pay a fixed rate amount.) The percentage will depend on the class (for NIC purposes), the person and the level of earnings or profits. NIC is typically not payable below a prescribed earnings or profits lower limit, and is payable at a reduced rate, beyond a prescribed earnings or profits upper limit.
For the rates and thresholds, see HM Treasury: Policy paper: Tax and tax credit rates and thresholds for 2016-17.
For further information about NICs including exemptions, see Practice note, Taxation of employees: National insurance contributions ( www.practicallaw.com/6-200-2122) .