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Page 23 of 32 
Budget 2006
National Insurance Contributions (NIC)
Class 1 employed
From 6 April 2006
|
Earnings per week
|
Not contracted out
|
Contracted out*
|
|
|
|
|
|
|
£
|
|
|
0-97.00
|
nil
|
nil
|
nil
|
nil
|
|
94.01-645.00
|
12.8%
|
11%
|
9.3%
|
9.4%
|
|
over 645.00
|
12.8%
|
1%
|
11.8%
|
1%
|
From 6 April 2005
| Earnings per week |
Not contracted out |
Contracted out* |
| |
| £ |
|
| 0-94.00 |
nil
|
nil
|
nil
|
nil
|
| 94.01-630.00 |
12.8%
|
11%
|
9.3%
|
9.4%
|
| over 630.00 |
12.8%
|
1%
|
12.8%
|
1%
|
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 £97.01-£645 (£94.01-£630 2005/2006) and 1% on earnings above £645 (£630 2005/2006)
|
Class 2 self-employed
|
2006/2007
|
2005/2006
|
|
Flat rate
|
£2.10 pw
|
£2.10 pw
|
|
Share fishermen
|
£2.75 pw
|
£2.75 pw
|
|
Volunteer development workers
|
£4.20 pw
|
£4.10 pw
|
|
Small earnings exception
|
£4,465 pa
|
£4,345 pa
|
Class 3 non-employed
| Voluntary |
£7.65 pw
|
£7.35 pw
|
Class 4 self-employed
| Main rate on profit |
8%
|
8%
|
| Annual lower limit |
£5,035
|
£4,895
|
| Annual upper limit |
£33,540
|
£32,760
|
| Rate above upper limit |
1%
|
1%
|
|
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