Rates & Allowances
Tax
The standard Personal Allowance is £12,570 which is the amount of income you don’t have to pay any tax on. That’s £242 per week.
National Insurance
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 £242 a week
- self-employed and making a profit of £12,570 or more a year
You need a National Insurance Number before you can start paying National Insurance contributions.
If you earn between £123 and £242 a week, your contributions are treated as having been paid to protect your National Insurance record.
Pensions
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.