|
National Insurance
Contributions (NICs)
Rates
The detailed NIC rates, earnings limits and
thresholds proposed for 2004/05 are set out below. The thresholds have been
increased but the rates of Class 1 and 4 contributions have been held at their
2003/04 level.
National insurance rates
|
2004/05
|
2003/04 |
| Employees’ threshold |
£91 pw |
£89 pw |
| Employers’ threshold |
£91 pw |
£89 pw |
| Upper
earnings limit - employees only |
£610 pw |
£595 pw |
| Employees’ Class 1 rate on earnings between threshold and
upper earnings limit |
11% |
11% |
Employees’ Class 1 rate on earnings above upper earnings limit
|
1% |
1% |
| Employers’ Class 1 rate on earnings above threshold |
12.8% |
12.8% |
| Class
2 – self-employed flat rate |
£2.05 pw |
£2 pw |
| Class
2 – small earnings exception |
£4,215 pa |
£4,095 pa |
| Lower
profit limit (for self-employed Class 4 contribution) |
£4,745 |
£4,615 |
| Upper
profits limit |
£31,720 |
£30,940 |
| Class
4 rate on profits between lower and upper profits limit |
8% |
8% |
| Class
4 rate on profits above upper profits limit |
1% |
1% |
| Class
3 – voluntary |
£7.15pw |
£6.95pw |
Note
Although employees’ NICs only become
payable once earnings exceed £91 per week, any earnings between £79
and £91 per week in 2004/05 will protect an entitlement to basic state
retirement benefits without incurring a liability to NIC.
|
+ Introduction
+
Personal Tax
+ NI Contributions
+ Business/Corporation Tax
+ Trusts
+
VAT
+ Environmental Measures
+ Miscellaneous
+ Disclaimer
+ Home |
