National Insurance Contributions
| Class 1
Employees Not Contracted-Out of State Second Pension (S2P) |
| |
2007/08 |
2006/07 |
| |
Employee |
Employer |
Employee |
Employer |
| NIC
rate |
11% |
12.8% |
11% |
12.8% |
| No NICs on the
first |
£100
pw |
£100
pw |
£97
pw |
£97
pw |
| NICs charged up
to |
£670
pw |
No Limit |
£645
pw |
No Limit |
| 1% NIC
on earnings over |
£670 pw |
N/A |
£645 pw |
N/A |
| Certain married
women |
4.85% |
12.8% |
4.85% |
12.8% |
| |
| Contracted-out
Rebate |
2007/08 |
2006/07 |
| Rebate
on |
£87.01 - £670
pw |
£84.01 - £645
pw |
| Salary-related
scheme |
1.6% |
3.7% |
1.6% |
3.5% |
| Money-purchase
scheme |
1.6% |
1.4% |
1.6% |
1.0% |
| Personal
Pension |
No reduction |
No reduction |
| |
| Class 1A Employer
2006-08 on car fuel benefits and most other taxable benefits: |
12.8% |
| |
| Limits
and Thresholds |
2007/08 |
2006/07 |
| Weekly |
Monthly |
Annual |
Weekly |
Monthly |
Annual |
| Lower earnings
limit |
£87 |
£377 |
£4,524 |
£84 |
£364 |
£4,368 |
| NICs
start |
£100 |
£435 |
£5,225 |
£97 |
£420 |
£5,035 |
| Upper earnings
limit |
£670 |
£2,904 |
£34,840 |
£645 |
£2,795 |
£33,540 |
| Low earnings
threshold – S2P |
|
|
£13,000 |
|
|
£12,500 |
| |
| Self-employed |
2007/08 |
2006/07 |
| Class
2 |
Flat
rate |
£2.20
pw £114.40 pa |
£2.10
pw £109.20 pa |
| if earnings over |
£4,635
pa |
£4,465
pa |
Class
4*
|
On
profits |
£5,225
- £34,840 pa: 8% |
£5,035
- £33,540 pa: 8% |
| |
Over
£34,840 pa: 1% |
Over
£33,540 pa: 1% |
|
|
| |
| Voluntary |
|
|
|
| Class
3 |
Flat
rate |
£7.80 pw £405.60 pa |
£7.55 pw £392.20 pa |
|
|
