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Business Advice
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Page 22 of 30
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
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nil
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nil
|
nil
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94.01-630.00
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12.8%
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11%
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9.3%
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9.4%
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over 630.00
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12.8%
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1%
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11.8%
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1%
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From 6 April 2004
| Earnings per week |
Not contracted out |
Contracted out* |
| |
employer |
employee |
employer |
employee |
| £ |
|
| 0-91.00 |
nil
|
nil
|
nil
|
nil
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| 91.01-610.00 |
12.8%
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11%
|
9.3%
|
9.4%
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| over 610.00 |
12.8%
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1%
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12.8%
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1%
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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)
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Class 2 self-employed
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2005/2006
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2004/2005
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Flat rate
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£2.10 pw
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£2.05 pw
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Share fishermen
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£2.75 pw
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£2.70 pw
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Volunteer development workers
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£4.10 pw
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£3.95 pw
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Small earnings exception
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£4,345 pa
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£4,215 pa
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Class 3 non-employed
| Voluntary |
£7.35 pw
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£7.15 pw
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Class 4 self-employed
| Main rate on profit |
8%
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8%
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| Annual lower limit |
£4,895
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£4,745
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| Annual upper limit |
£32,760
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£31,720
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| Rate above upper limit |
1%
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1%
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Business Advice