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Budget 2009 - Employment Taxes
National Insurance Contributions (NIC)
Class 1 employed
| From 6 April 2009 | ||||
|---|---|---|---|---|
| Earnings per week | Not contracted out1 | Contracted out1 | ||
£ |
employer | employee | employer | employee |
0-110.00 |
nil |
nil |
nil |
nil |
110.01-770.00 |
12.8% |
11% |
9.1% |
9.4% |
770.01-844.00 |
12.8% |
11% |
12.8% |
11% |
over 844.00 |
12.8% |
1% |
12.8% |
1% |
From 6 April 2008 to 5 April 2009
| Earnings per week | Not contracted out | Contracted out1 | ||
|---|---|---|---|---|
£ |
employer | employee | employer | employee |
0-105.00 |
nil | nil | nil | nil |
105.01-770.00 |
12.8% | 11% | 9.1% | 9.4% |
over 770.00 |
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 £110.01 - £844.00 (£105.01 - £770 2008/2009) and 1% on earnings above £844 (£770 2008/2009).
1 Employer’s contribution rate of 11.4% in respect of money purchase schemes.
Class 2 self-employed
| 2009/2010 | 2008/2009 | |
|---|---|---|
| Flat rate | £2.40 pw | £2.30 pw |
| Share fishermen | £3.05 pw | £2.95 pw |
| Volunteer development workers | £4.75 pw | £4.50 pw |
| Small earnings exception | £5,075 pa | £4,285 pa |
Class 3 Voluntary
| 2009/2010 | 2008/2009 | |
|---|---|---|
| Flat Rate | £12.05 pw | £8.10 pw |
Class 4 self-employed
|
2009/2010 |
2008/2009 |
|---|---|---|
| Main rate on profit | 8% | 8% |
| Annual lower limit | £5,715 | £5,435 |
| Annual upper limit | £43,875 | £40,040 |
| Rate above upper limit | 1% | 1% |
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