Budget
Summary: National Insurance Contributions
March
2008 |
Class
1 (Employees)
Not
Contracted out of State Second Pension (S2P) |
|
| |
2008/09 |
2007/08 |
| Employee |
No
NICs where earnings are
up to
£105 pw |
No
NICs where earnings are up to £100 a week |
| |
11% NICs on £105.01-£770
pw |
11%
NICS on £100.01 - £670 a week |
| |
1% NICs over £770 pw |
1%
NICS over £670 a week |
| Employer
|
No NICs on the first £105 pw
|
No
NICS on the first £100 a week |
| |
12.8% NICs over £105 pw
|
12.8%
NICS over £100 a week |
Earnings
limits/thresholds
| |
2008/09 |
2007/08 |
| |
Weekly |
Monthly |
Annual |
Weekly |
Monthly |
Annual |
| |
£ |
£ |
£ |
£ |
£ |
£ |
| Lower
limit (LEL) |
90 |
390 |
4,680 |
87 |
377 |
4,524 |
| NICs
start |
105 |
453 |
5,435 |
100 |
435 |
5,225 |
| Upper
limit (UEL) |
770 |
3,337 |
40,040 |
670 |
2,903 |
34,840 |
Contracted-out
S2P rebate
| |
2008/09 |
2007/08 |
| Reduction
on band earnings |
£90.01-£770
pw |
£87.01
- £670 pw |
| Employer
rate reduction |
|
|
| Salary-related
scheme |
3.7% |
3.7% |
| Money-purchase
scheme |
1.4% |
1.4% |
| Employee
rate reduction |
1.6% |
1.6% |
| |
|
|
| Class
1A (Employers) |
2008/09 |
2007/08 |
| Most
taxable employee benefits |
12.8% |
12.8% |
| |
|
|
| Class
2 (self-employed) |
2008/09 |
2007/08 |
| Flat
rate |
£2.20
pw £119.60 pa |
£2.20
pw £114.40 pa |
| If
earnings are over |
£4,825
pa |
£4,635
pa |
| |
|
|
| Class
4 (self-employed) |
2008/09 |
2007/08 |
| On
profits |
£5,435
- £40,040 pa = 8% |
£5,225
- £34,840 pa = 8% |
| |
Over
£40,040 pa = 1% |
Over
£34,840 pa = 1% |
| |
|
|
| Class
3 (Voluntary) |
2008/09 |
2007/08 |
| Flat rate |
£8.10 pw |
£7.80 pw |
| |
£421.20 pa |
£405.60 pa |
|
|
|
| ^Top |
|
|
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Rights Reserved | © S R Lynn & Co 2003 | 11 Warren Yard,
Wolverton
Mill, Milton Keynes, MK12 5NW | Photography by Stephen Lynn