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Budget 2008
National Insurance Contributions (NIC)
Class 1 employed
From 6 April 2008
| Earnings per week £ | Not contracted out | Contracted out* | ||
| employer | employee | employer | employee | |
| 0-105.00 | nil | nil | nil | nil |
| 105.01-670.00 | 12.8% | 11% | 9.1% | 9.4% |
| over 770.00 | 12.8% | 1% | 12.8% | 1% |
From 6 April 2007 to 5 April 2008
| Earnings per week £ | Not contracted out | Contracted out1 | ||
| employer | employee | employer | employee | |
| 0-100.00 | nil | nil | nil | nil |
| 100.01-670.00 | 12.8% | 11% | 9.3% | 9.4% |
| over 670.00 | 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 £105.01 - £770.00 (£100.01 - £670 2007/2008) and 1% on earnings above £770 (£670 2007/2008).
1 Employer’s contribution rate of 11.4% (11.8% 2006/2007) in respect of money purchase schemes.
Class 2 self-employed
| 2008/2009 | 2007/2008 | |
| Flat rate | £2.30 pw | £2.20 pw |
| Share fishermen | £2.95 pw | £2.85 pw |
| Volunteer development workers | £4.50 pw | £4.35 pw |
| Small earnings exception | £4,825 pa | £4,635 pa |
Class 3 Voluntary
| 2008/2009 | 2007/2008 | |
| Flat Rate | £8.10 pw | £7.80 pw |
Class 4 self-employed
|
2008/2009 |
2007/2008 |
| Main rate on profit | 8% | 8% |
| Annual lower limit | £5,435 | £5,225 |
| Annual upper limit | £40,040 | £34,840 |
| Rate above upper limit | 1% | 1% |
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