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How much will it cost to change to the standard rate of National Insurance contributions?

April 26, 2017contributions COST Insurance National rate standard

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How much will it cost to change to the standard rate of National Insurance contributions?

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If you are employed, you will pay more at the standard rate than the reduced rate. You will start to pay National Insurance contributions at the standard rate when your earnings exceed the Earnings Threshold (ET). However, you will not pay National Insurance contributions on earnings between the Lower Earnings Limit (LEL) and the ET but you would be treated as if National Insurance contributions have been paid on those earnings. These will count towards helping you build up entitlement to contributory benefits. If you are self employed you will be liable to pay Class 2 National Insurance contributions in addition to the Class 4 National Insurance contributions you already pay when your net profits exceed a specified amount.