National Insurance Contributions
Class 1 (employees)
| 2008/2009 | Within SERPS | Contracted Out | |
| Salary | Money | ||
| Related | Purchase | ||
| Employee contributions | |||
| - on earnings between £105 and £770pw | 11.0% | 9.4% | 9.4% |
| - on earnings above £770pw | 1% | 1% | 1% |
| Employer contributions | |||
| - on earnings between £105.01 and £770pw | 12.8% | 9.1% | 11% |
| - on earnings above £770pw | 12.8% | 12.8% | 12.8% |
Employer contributions (at 12.8%) will be paid on most benefits in kind from 6.4.2000, and on tax paid on an employee's behalf under a PAYE settlement agreement.
Class 2 (Self-employed)
| Flat rate per week | £2.30 |
| Small earnings exception: profits per annum | £4,825 |
Class 3 (Voluntary)
| Flat rate per week | £8.10 |
Class 4 (Self-employed)
| On profits £5,435 - £40,040 | 8.0% |
| On profits over £40,040 | 1.0% |
£ per week |
2008-09 |
2009-10 | 2010-11 |
|---|---|---|---|
| Lower earnings limit, primary Class 1 | £90 |
£95 | £97 |
| Upper earnings limit, primary Class 1 | £770 |
£844 | £844 |
| Upper accruals point | N/A | £770 | £770 |
| Primary threshold | £105 |
£110 | £110 |
| Secondary threshold | £105 |
£110 | £110 |
| Employees’ primary Class 1 rate between primary threshold and upper earnings limit | 11% |
11% | 11% |
| Employees’ primary Class 1 rate above upper earnings limit | 1% |
1% | 1% |
| Class 1A rate on employer provided benefits (1) | 12.8% | 12.8% | 12.8% |
| Employees’ contracted-out rebate | 1.6% |
1.6% | 1.6% |
| Married women’s reduced rate between primary threshold and upper earnings limit | 4.85% |
4.85% | 4.85% |
| Married women’s rate above upper earnings limit | 1% |
1% | 1% |
| Employers’ secondary Class 1 rate above secondary threshold | 12.8% |
12.8% | 12.8% |
| Employers’ contracted-out rebate, salary-related schemes | 3.7% |
3.7% | 3.7% |
| Employers’
contracted-out rebate, money-purchase schemes |
1.4% |
1.4% | 1.4% |
| Class 2 rate |
£2.30 |
£2.40 | £2.40 |
| Class 2 small
earnings exception |
£4,825 per year |
£5,075 per year | £5,075 per year |
| Special Class
2 rate for share fishermen |
£2.95 |
£3.05 | £3.05 |
| Special Class
2 rate for volunteer development workers |
£4.50 |
£4.75 | £4.85 |
| Class 3 rate |
£8.10 |
£12.05 | £12.05 |
| Class 4 lower
profits limit |
£5, 435 per year |
£5, 715 per year | £5, 715 per year |
| Class 4 upper
profits limit |
£40, 040 per year |
£43, 875 per year | £43, 875 per year |
| Class 4 rate
between lower profits limit and upper profits limit |
8% |
8% | 8% |
| Class 4 rate
above upper profits limit |
1% |
1% | 1% |
(1) Class 1A NICs are calculated using the previous year’s benefit figure and the rate appropriate at the due date – July.
© 2001-2012 Sloane & Co. LLP
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