Rates & Allowances
The standard Personal Allowance is £12,500 which is the amount of income you don’t have to pay any tax on. That’s £240 per week.
You pay National Insurance contributions to qualify for the State Pension.
You pay National Insurance if you’re 16 or over and either:
- an employee earning above £183 a week
- self-employed and making a profit of £6,475 or more a year
You need a National Insurance Number before you can start paying National Insurance contributions.
If you earn between £120 and £183 a week, your contributions are treated as having been paid to protect your National Insurance record.
Workplace pension contributions
|The minimum your employer pays||You pay||Total minimum contribution|
|From April 2020||3%||5%||8%|
Your employer must contribute the minimum amount if you earn more than:
- £520 per month
- £120 per week
- £480 per 4 weeks
They do not have to contribute anything if you earn these amounts or less.