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Budget 2005
National Insurance Contributions (NIC)
Class 1 employed
From 6 April 2005
|
Earnings per week |
Not contracted out |
Contracted out* |
||
|
employer |
employee |
employer |
employee |
|
|
£ |
||||
|
0-94.00 |
nil |
nil |
nil |
nil |
|
94.01-630.00 |
12.8% |
11% |
9.3% |
9.4% |
|
over 630.00 |
12.8% |
1% |
11.8% |
1% |
From 6 April 2004
| Earnings per week | Not contracted out | Contracted out* | ||
| employer | employee | employer | employee | |
| £ | ||||
| 0-91.00 |
nil
|
nil
|
nil
|
nil
|
| 91.01-610.00 |
12.8%
|
11%
|
9.3%
|
9.4%
|
| over 610.00 |
12.8%
|
1%
|
12.8%
|
1%
|
* Different contracted out reductions apply in respect of contracted out money purchase schemes
Employer's NIC of 12.8% applies to most income tax benefits
Note: employee's rate for a married woman with a valid election 4.85% on earnings of £94.01-£630 (£91.01-£610 2004/2005) and 1% on earnings above £630 (£610 2004/2005)
|
Class 2 self-employed |
2005/2006 |
2004/2005 |
|
Flat rate |
£2.10 pw |
£2.05 pw |
|
Share fishermen |
£2.75 pw |
£2.70 pw |
|
Volunteer development workers |
£4.10 pw |
£3.95 pw |
|
Small earnings exception |
£4,345 pa |
£4,215 pa |
Class 3 non-employed
| Voluntary |
£7.35 pw
|
£7.15 pw
|
Class 4 self-employed
| Main rate on profit |
8%
|
8%
|
| Annual lower limit |
£4,895
|
£4,745
|
| Annual upper limit |
£32,760
|
£31,720
|
| Rate above upper limit |
1%
|
1%
|
The figures shown here are subject to ammendment as the Finance Bill passes through Parliament.
This information has been prepared only as a topical guide to tax and personal financial matters. No responsibility can be accepted by us for loss occasioned to any person acting or refraining from acting as a result of any material contained in this publication.
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