free small business advice & information
Main Menu
Hot Links
Budget 2007
National Insurance Contributions (NIC)
Class 1 employed
From 6 April 2007
| Earnings per week |
Not contracted out |
Contracted out* |
||
| employer |
employee |
employer |
employee |
|
| £ |
||||
| 0-100.00 |
nil |
nil |
nil |
nil |
| 100.01-670.00 |
12.8% |
11% |
9.1% |
9.4% |
| over 670.00 |
12.8% |
1% |
12.8% |
1% |
From 6 April 2006 to 5 April 2007
| Earnings per week | Not contracted out | Contracted out1 | ||
| employer | employee | employer | employee | |
| £ | ||||
| 0-97.00 | nil | nil | nil | nil |
| 97.01-645.00 | 12.8% | 11% | 9.3% | 9.4% |
| over 645.00 | 12.8% | 1% | 12.8% | 1% |
Employer’s NIC of 12.8% applies to most income tax benefits.
Employee’s rate for a married woman with a valid election 4.85% on earnings of £100.01 - £670.00 (£97.01 - £645 2006/2007) and 1% on earnings above £670 (£645 2006/2007).
1 Employer’s contribution rate of 11.4% (11.8% 2006/2007) in respect of money purchase schemes.
Class 2 self-employed
|
2007/2008 |
2006/2007 |
Flat rate |
£2.20 pw |
£2.10 pw |
Share fishermen |
£2.85 pw |
£2.75 pw |
Volunteer development workers |
£4.35 pw |
£4.20 pw |
Small earnings exception |
£4,635 pa |
£4,465 pa |
Class 3 Voluntary
| Flat Rate | £7.80 pw |
£7.55 pw |
Class 4 self-employed
| Main rate on profit | 8% | 8% |
| Annual lower limit | £5,225 | £5,035 |
| Annual upper limit | £34,840 | £33,540 |
| 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.
Monthly Prize Draw!
Win £375 worth of advertising for your business.
Enter our competition by either:
- Signing up to the is4profit Small Business Newsletter or
- Entering your firm's details into the Small Business Directory