Last updated 06/04/23

Class 1 employer's National Insurance rates for 2023/24

Class 1 employer's National Insurance rates for 2023/24
Class 1
13.8%
Rate above the Secondary Threshold (£758/month).
Class 1A and 1B rate
13.8%
Rate paid on taxable expenses and benefits.

Employer National Insurance: what you need to know

Employer National Insurance is a type of Class 1 National Insurance that employers have to pay to HMRC in respect of their employees’ wages. You can find out more about National Insurance on our accounting glossary.

For full details of how employers should pay towards all employees’ National Insurance, including rebates and special rates, check the HMRC website.

How to pay Class 1 employers’ National Insurance contributions

As an employer you must record employees’ pay and deduct tax and National Insurance through the PAYE system. Your payroll software will tell you how much you owe, and report this to HMRC.

Running and reporting payroll is the first step, but actually paying employers’ National Insurance to HMRC is a separate process. You pay employers’ National Insurance to HMRC along with Income Tax deducted from staff wages under PAYE, and employee's National Insurance.

You can see how much Class 1 and Class 1B National Insurance your business owes by logging in to your online PAYE account. Note that Class 1A contributions are not included in your PAYE bill and must be paid separately.

Online or telephone banking (Faster Payments) Same or next day
CHAPS Same or next day
Bacs Three working days
Debit card Three working days
Credit card (1.5% charge) Three working days
Direct Debit Three working days
Standing order Three working days
At your bank or building society Three working days

Online or telephone banking: If you’re paying by online or telephone banking (Faster Payments, CHAPS or Bacs), you can find details for the HMRC bank account you should pay your tax bill into on the government website.

Debit or credit card: If you are paying by debit or credit card you can do so at the PAYE payment portal.

Cheque: You can pay your PAYE bill with a cheque made payable to ‘HM Revenue and Customs only’ followed by your 13-character Accounts Office reference number. It should be posted along with the payslip for the correct period to HMRC, Direct, BX5 5BD – no street name, city name or PO Box is required.

Direct Debit: You can set up a Direct Debit from your HMRC online account. You’ll have to set up a new direct debit every time you wish to make a payment. The first time you set one up, the payment will take five working days, subsequently it will take three working days.

At your bank or building society: You can pay your PAYE bill at your bank or building society by debit card, cash or cheque made payable to ‘HM Revenue and Customs only’ followed by your Accounts Office reference number.

Previous National Insurance rates for employers

2023-24
Class 1 13.8%
Class 1A and 1B rate 13.8%
2022-23 (from 6th November 2022)
Class 1 13.8%
Class 1A and 1B rate 13.8%
2022-23 (before 6th November 2022)
Class 1 15.05%
Class 1A and 1B rate 15.05%
2021-22
Class 1 13.8%
Class 1A and 1B rate 13.8%
2020-21
Class 1 13.8%
Class 1A and 1B rate 13.8%
2019-20
Class 1 13.8%
Class 1A and 1B rate 13.8%

Previous National Insurance thresholds for employers

2023-24 £758/month
2022-23 £758/month
2021-22 £737/month
2020-21 £732/month
2019-20 £719/month

Disclaimer: The content included on this page is based on our understanding of tax law at the time of publication. It may be subject to change and may not be applicable to your circumstances, so should not be relied upon. You are responsible for complying with tax law and should seek independent advice if you require further information about the content included on this page. If you don't have an accountant, take a look at our directory to find a FreeAgent Practice Partner based in your local area.

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