|
Page 23 of 31
Budget 2004
Miscellaneous
National Insurance Contributions (NIC)
Class 1 employed
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%
|
11.8%
|
1%
|
From 6 April 2003
| Earnings per week |
Not contracted out |
Contracted out* |
| |
employer |
employee |
employer |
employee |
| £ |
|
| 0-89.00 |
nil
|
nil
|
nil
|
nil
|
| 89.01-595.00 |
12.8%
|
11%
|
9.3%
|
9.4%
|
| over 595.00 |
12.8%
|
1%
|
12.8%
|
1%
|
Employer's NIC of 12.8% (11.8% 2002/2003) applies to most income tax benefits
Note: employee's rate for a married woman with a valid election 4.85% (4.85% 2003/2004) on earnings of £91.01-£610 (£89.01-£585 2003/2004) and 1% (1% 2003/2004) on earnings above £610 (£595 2003/2004)
|
Class 2 self-employed
|
2004/2005
|
2003/2004
|
|
Flat rate
|
£2.05 pw
|
£2.00 pw
|
|
Share fishermen
|
£2.70 pw
|
£2.65 pw
|
|
Volunteer development workers
|
£3.95 pw
|
£3.85 pw
|
|
Small earnings exception
|
£4,215 pa
|
£4,095 pa
|
Class 3 non-employed
| Voluntary |
£7.15 pw
|
£6.95 pw
|
Class 4 self-employed
| Main rate on profit |
8%
|
8%
|
| Annual lower limit |
£4,745
|
£4,615
|
| Annual upper limit |
£31,720
|
£30,920
|
| Rate above upper limit |
1%
|
1%
|
|
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