What are the 2020/21 Income Tax & National Insurance rates?

The income tax rates, along with the Class 2 and Class 4 National Insurance rates for 2021/22 are as follows:

Small Profits Threshold: If you’re earning below the Small Profits Threshold, you’re not required to pay Class 2 NICs. But if you choose, you may pay Class 2 NICs voluntarily at the end of the tax year.

Lower Profits Limit: If you’re earning up to or below this limit, you’re only required to pay Class 2 NICs. 

Upper Profits Limit: If you’re earning up to or below the Upper Profits Limit, you’ll need to pay Class 2 NICs, as well as Class 4 NICs (9%) on profits between the LPL and UPL.

If you’re earning above this limit, you’ll need to pay Class 2 NICs, Class 4 NICs (9%) on profits between the LPL and UPL, and Class 2 NICs (2%) on profits above the UPL.