National insurance contributions (NIC)
| Class 1
(Employees) |
| Not Contracted
out of State Second Pension S2P |
|
2006/07 |
2005/06 |
| Employee |
Employee |
|
No NICs where earnings are up to
£97 a week
11% NICs on £97.01-£645 a week
1%
NICs over £645 a week |
No NICs where earnings are up to
£94 a week
11% NICs on £94.01-£630 a week
1% NICs
over £630 a week |
| Employer |
Employer |
|
No NICs on the first £97 a
week
12.8% NICs over £97 a week |
No NICs on the first £94 a week
12.8% NICs over £94 a week |
| Earnings limit or threshold |
2006/07 |
2005/06 |
| |
Weekly |
Monthly |
Annual |
Weekly |
Monthly |
Annual |
| £ |
£ |
£ |
£ |
£ |
£ |
| Lower limit (LEL) |
84 |
364 |
4,368 |
82 |
356 |
4,264 |
| NICs start |
97 |
420 |
5,035 |
94 |
408 |
4,895 |
| Upper limit (UEL) |
645 |
2,795 |
33,540 |
630 |
2,730 |
32,760 |
| Contracted-out S2P rebate |
2006/07 |
2005/06 |
| Reduction on band earnings |
£84.01-£645
pw |
£82.01-£630 pw |
| Employer rate reduction |
|
|
|
|
3.5% |
3.5% |
|
|
1.0% |
1.0% |
| Employee rate reduction |
1.6% |
1.6% |
| Class 1A
(Employers) |
|
|
| Most taxable employee
benefits |
12.8%
|
12.8% |
| |
|
|
| Class 2
(Self-Employed) |
2006/07 |
2005/06 |
| Flat rate |
£2.10 pw £109.20
pa |
£2.10 pw £109.20
pa |
| If earnings over |
£4,465 pa |
£4,345 pa |
| Class 4
(Self-Employed) |
2006/07 |
2005/06 |
| On profits |
£5,035-£33,540
pa 8% |
£4,895-£32,760 pa
8% |
| |
Over £33,540 pa
1% |
Over £32,760 pa
1% |
| Class 3
(Voluntary) |
2006/07 |
2005/06 |
| Flat rate |
£7.55pw
£392.60 pa |
£7.35pw £382.20
pa |
|
