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.
Use our limited company take home pay calculator to instantly determine your net income after corporation tax, dividend tax, and National Insurance contributions. Simply input your company profits and desired salary/dividend split to see exactly how much you'll receive as a director, helping you optimise your tax-efficient extraction strategy.
.png)