National insurance contributions
| Class 1 (Employees) |
| Not Contracted
out of State Second Pension S2P |
| 2008/09 |
2007/08 |
| Employee |
Employee |
No NICs where earnings
are up to £105 a week
11% NICs on £105.01-£770 a week
1% NICs over £770 a week |
No NICs where earnings
are up to £100 a week
11% NICs on £100.01-£670 a week
1% NICs over £670 a week |
| Employer |
Employer |
No NICs on the first £105
a week
12.8% NICs over £105 a week |
No NICs on the first £100
a week
12.8% NICs over £100 a week |
| Earnings limit
or threshold |
2008/09 |
2006/07 |
| |
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 |
2,904 |
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 |
|
|
|
|
3.7% |
3.7% |
|
|
1.4% |
1.4% |
|
| Employee rate reduction |
1.6% |
1.6% |
|
| Class 1A (Employers) |
|
|
|
| Most taxable employee benefits |
12.8% |
12.8% |
|
| |
|
|
|
| Class 2 (Self-Employed) |
2008/09 |
2007/08 |
|
| Flat rate |
£2.30 pw £119.60
pa |
£2.20 pw £114.40
pa |
|
| If earnings 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 |
£8.10pw £421.20
pa |
£7.80pw £405.60
pa |
|
This summary has been prepared very rapidly and is for general information only. The proposals are in any event subject to amendment before the Finance Act is passed. It is recommended you seek competent professional advice before taking any action on the basis of the contents of this publication.
Contact Marks Bloom on 0800 0184676
