|
Page 22 of 31
Budget 2007
National Insurance Contributions (NIC)
Class 1 employed
From 6 April 2007
| Earnings per week
|
Not contracted out |
Contracted out* |
|
|
|
|
|
| £
|
|
| 0-100.00
|
nil |
nil |
nil |
nil |
| 100.01-670.00
|
12.8% |
11% |
9.1% |
9.4% |
| over 670.00
|
12.8% |
1% |
12.8% |
1% |
From 6 April 2006 to 5 April 2007
| Earnings per week |
Not contracted out |
Contracted out1 |
| |
| £ |
|
| 0-97.00 |
nil |
nil |
nil |
nil |
| 97.01-645.00 |
12.8% |
11% |
9.3% |
9.4% |
| over 645.00 |
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 £100.01 - £670.00 (£97.01 - £645 2006/2007) and 1% on earnings above £670 (£645 2006/2007).
Class 2 self-employed
|
2007/2008 |
2006/2007 |
Flat rate |
£2.20 pw |
£2.10 pw |
Share fishermen |
£2.85 pw |
£2.75 pw |
Volunteer development workers |
£4.35 pw |
£4.20 pw |
Small earnings exception |
£4,635 pa |
£4,465 pa |
Class 3 Voluntary
| Flat Rate |
£7.80 pw |
£7.55 pw |
Class 4 self-employed
| Main rate on profit |
8% |
8% |
| Annual lower limit |
£5,225 |
£5,035 |
| Annual upper limit |
£34,840 |
£33,540 |
| Rate above upper limit |
1% |
1% |
|
Business Advice