National insurance contributions 2011

Class 1 (Employees) Not Contracted out of State Second Pension S2P
2011/12 2010/11
Employee: Employee:
No NICs where earnings are up to £139 a week 12% NICs on £139.01-£817 a week 2% NICs over £817 a week No NICs where earnings are up to £110 a week 11% NICs on £110.01-£844 a week 1% NICs over £844 a week
Employer: Employer:
No NICs on the first £136 a week 13.8% NICs over £136 a week No NICs on the first £110 a week 12.8% NICs over £110 a week
Earnings limit or threshold 2011/12 2010/11
Weekly Monthly Annual Weekly Monthly Annual
£ £ £ £ £ £
Lower limit (LEL) 102 421 5,044 97 421 5,044
Primary earnings threshold 139 602 7,225 110 476 5,715
Secondary earnings threshold 136 589 7,072 110 476 5,715
Upper accrual point 770 3,337 40,040 770 3,337 40,040
Upper limit (UEL) 817 3,540 42,475 844 3,656 43,875
Contracted-out S2P rebate 2011/12 2010/11
Reduction on band earnings £102.01-£770 pw £97.01-£770 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) 2011/12 2010/11
Most taxable employee benefits 13.8% 12.8%
Class 2 (Self-Employed) 2011/12 2010/11
Flat rate £2.50 pw £130.00 pa
£2.40 pw £124.80 pa
Small earnings exception £5,315 pa £5,075 pa
Class 4 (Self-Employed) 2011/12 2010/11
On profits £7,225-£42,475 pa9% £5,715-£43,875 pa8%
Over £42,475 pa2% Over £43,875 pa 1%
Class 3 (Voluntary) 2011/12 2010/11
Flat rate £12.60 pw£655.20 pa £12.05 pw £626.60 pa
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