National Insurance Contributions
| Class 1 (not contracted out) |
Employer |
Employee |
| Lower earnings limit |
|
£90 |
| Payable on weekly earnings |
|
|
| £105.01 - £770 |
12.8% |
11% |
| Over £770 |
12.8% |
1% |
| Payable on monthly earnings |
|
|
| £453 - £3,337 |
12.8% |
11% |
| Over £3,337 |
12.8% |
1% |
Men 65 and over and
women 60 and over |
12.8% |
Nil |
| Employees' contracted-out rebate |
1.6% |
| Married women's reduced rate between £105 and £770 |
4.85% |
| Employers' contracted-out rebate, salary-related schemes |
3.7% |
| Employers' contracted-out rebate, money purchase schemes |
1.4% |
| |
|
| Class 1A (on relevant benefits) |
12.8% |
Nil |
| |
|
| Class 1B (on PAYE settlement arrangement) |
12.8% |
|
| |
|
| Class 2 (Self employed) |
£2.30 per week |
| Class 2 contributions - share fishermen |
£2.95 per week |
| Class 2 contributions - volunteer development workers |
£4.50 per week |
| Limit of net earnings for exception |
£4,825 per annum |
| |
|
| Class 3 (Voluntary) |
£8.10 per week |
| |
|
| Class 4 (* Self employed on profits) |
|
| £5,435 to £40,040 |
8% |
| Excess over £40,040 |
1% |
| *Exemption applies if state retirement age was reached by 6 April 2008. |
| |
|
| Maximum contributions |
|
| Class 1 or Class 1 & 2 |
£3,876.95 + 1% of earnings over £770 |
| Class 2 & Class 4 |
£2,890.30 + 1% of profits over £40,040 a year |
| |
|
| Self employed |
|
| Class 4 increase compared to 2007/08 (up to upper profits limit £347.20 (14.6%) |
Notes
- For those earning between £90 per week and £770 per week, employers receive a rebate of 1.4% on contracted out money purchase schemes or 3.7% on contracted out final salary schemes, and employees, a rebate of 1.6% for either scheme.
- For children under 16, men over 65 and women over 60 there are no national insurance contributions payable, but employers' contributions remain payable.
Did you know
That the Government expect to raise £105 billion from national insurance contributions. This represents an increase of more than 7% when compared to the £97.4 billion estimated yield in the last tax year.
